Ladies and gentlemen, good day, and welcome to Acutaas Limited Q2 FY 2027 earnings conference call, hosted by Equirus Securities Private 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. Siddharth Gadekar from Equirus Securities Private Limited. Thank you, and over to you, sir. Good evening, everyone, and thank you for joining us on Acutaas Chemicals Q2 FY 2027 earnings conference call. Today we have with us Acutaas Chemicals management represented by Mr. Naresh Patel, Chairman and Managing Director, Mr. Abhishek Patel, Vice President, Strategy, and Mr. Bhavin Shah, Chief Financial Officer. I would now like to invite Mr. Bhavin Shah to initiate the proceedings. Over to you, sir. Thank you. Thank you, Siddharth. Good evening, everyone. We are pleased to welcome you all to our earnings conference call to discuss Q2 and H1 FY 2027 financials. Please note that a copy of our disclosure is available on the investor section of our website, as well as on the stock exchanges. Please do note that anything said on this call, which reflects our outlook towards the future or which could be construed as forward-looking statement, must be reviewed in conjunction with the risk that the company may faces. The conference call is being recorded, and the transcript along with the audio of the same will be made available on the website of the company and exchanges. Please also note that the audio of the conference call is the copyright material of Acutaas Chemicals and cannot be copied, rebroadcasted, or attributed in press or media without specific and written consent of the company. Now I would like to hand over the floor to our CMD, Mr. Naresh Patel, for his opening statement. Over to you, sir. Thank you, Bhavin. Good evening, everyone. I hope you are all doing well. With Diwali just around the corner, I would like to extend warm wishes from the Acutaas family to you and your loved ones. May this festival season bring joy, prosperity, good health, and success to everyone. Wishing you and your family a very happy Diwali. I will start my remarks with pharmaceutical intermediate business. Demand environment remains robust and whatever cost pressures we face due to geopolitical issues, we have been able to pass them on successfully. On the generic side, several large products are going off patent. We have already developed intermediates for those products long back. Therefore, we are benefiting from our strategy of developing products ahead of the market. Coming to CDMO, during our Q3 FY 2025 earning call in January 2025, we had shared our ambition of achieving INR 1,000 crore in CDMO revenue by FY 2028. Based on the current orders of existing as well as new CDMO contracts, we now believe we will achieve this target one year ahead of schedule. It means in FY 2027, we will be achieving this INR 1,000 crore. Here I would like to highlight that we continue to add very exciting products to our CDMO pipeline. A couple of these products have potentially to become billion-dollar product for our innovator customers. Here I would like to say that this CDMO business will be double in next three financial year. So it means from INR 1,000 crore to new target we had set as INR 2,000 crore by FY 2030. Now let me move to specialty chemicals. Starting with battery chemicals, from industry point of view, demand continues to exceed supply. I am happy to share that this was our first quarter of commercial revenue from battery chemicals business. Initial commercial shipment of our third product were dispatched during last quarter. We will see a scale-up of third product in coming quarters. We have also sent pilot scale validation batches of fourth product to the customer. Overall, the start is very encouraging, and I believe we will see a very strong ramp-up as we already have orders in our hand. Coming to semiconductor chemicals, I am happy to share that we have inaugurated our plant in South Korea ahead of schedule. This state-of-the-art facility will manufacture chemicals that goes into photoresist, packaging material, etching materials, and other semiconductor applications. We have been submitting multiple qualification batches to customers in South Korea, which showcase strong customer traction. I believe FY 2028 will be year of ramp-up for initial products, while we will continue to add more products into the basket. Moving to BFC. BFC is seeing strong order demand from its U.S. customers, as well as we have started receiving orders from Korean and Japanese customers. During the last quarter, our U.S. customer was acquired by another U.S.-based company. This caused a temporary pause in the shipments. Supplies have now resumed, and operations are back to normal. On commodity chemicals, phasing out of old product is going on as per plan, and that is visible in our numbers as well. Turning to our performance for the quarter. We delivered strong revenue of INR 4,369 million, which is growth of 42.7% year-on-year. This was driven by strong performance of our pharmaceutical intermediate business, whereas specialty chemicals business was muted during the quarter. Since we are on track to achieve our CDMO earlier target ahead of time, we would now like to set our. Before I conclude, I would also like to revise our revenue growth guidance for current year from 25% to around 30%. We are also raising our EBITDA margin guidance between 38%-40% range from FY 2027. With that, I would now like to hand over to our Vice President of Strategy, Abhishek Patel, who will walk you through the detailed business update. Thank you, Naresh bhai. Good evening, everyone. Let me share some additional insight into our business performance for the quarter. Starting with advanced pharmaceutical intermediate segment. This segment delivered robust performance with revenue of INR 4,020 million in Q2 FY 2027, reflecting a strong year-on-year growth of 53.1%. CDMO business continued its strong growth trajectory, supported by robust growth in core pharmaceutical business. We are happy to share that we deliver more than 25% year-on-year growth in our core business this quarter, driven by ramp-up of new products as well as strong growth in top products. We are happy to share that we have received order for new CDMO contracts, which are expected to start contributing revenue from H2 FY 2027. Moving on to specialty chemical segment. The revenue of quarter was INR 349 million. 349 million, which is down 20% YOY, driven by phasing out of old commodity products as well as temporary pause in shipment in BFC business due to ownership change of the U.S. customer, as highlighted by Naresh bhai. I am happy to share the shipments have started and we are very much on target to deliver a growth in BFC this year. Now turning to the CapEx. CapEx for H1 FY 2027 was INR 1,239 million. It is spread across electrolyte additive project, pilot plant, Indichem site, and maintenance CapEx. Furthermore, for the full year, we believe our total CapEx would be around INR 3,000 million. So in H2 FY 2027, we plan to do additional CapEx of INR 1,650 million CapEx, which will have around INR 1,000 million for electronic grade chemicals, INR 450 million for second phase of electrolyte additive CapEx, and remaining will be for the maintenance CapEx. Please note this calculation does not include planned R&D CapEx as well as the land acquisition. With that, I will now hand over the floor to our Chief Financial Officer, Bhavin Shah, who will walk you through details related to financials. Over to you, Bhavin bhai. Thank you, Abhishek bhai. I would like to briefly highlight the key performance metrics for the quarter and half year before we open the floor for questions. Let me start with quarterly performance. Revenue from operations for the quarter reached INR 4,369 million, representing 42.7% growth YOY. Gross profit for the quarter was INR 2,715 million, reflecting 59% increase compared to the same period last year. The gross margin expanded by 637 basis point YOY to 62.1%. Gross margin was driven by higher contribution from pharma intermediate business compared to the same period last year. EBITDA for the quarter was INR 1,760 million, up 84.6% YOY. EBITDA margins were at 40.3%, up 914 basis point YOY. EBITDA margin was driven by expansion in gross margin as well as operating leverage. PAT for the quarter was INR 1,231 million, up 71.4% YOY. PAT margins for the quarter were at 28.2%, which show an expansion of 472 basis point YOY. Moving on to the half-yearly numbers. Revenue from operations for H1 FY 2027 was INR 7,666 million, representing 49.3% growth YOY. EBITDA for H1 FY 2027 was INR 2,890 million, up 97.7% YOY. EBITDA margins were at 37.7%, up 922 basis point YOY. PAT for the first half FY 2027 was INR 1,981 million, up 71% YOY. PAT margin for H1 FY 2027 were at 25.8%, which show an expansion of 328 basis point YOY. Moving to the balance sheet item. Net cash and cash equivalents were around INR 3,009 million as on 30th September 2026. Our working capital for the quarter stands at 115 days vis-à-vis 99 days in Q1 FY 2027. This was driven by higher debtor days. With that, I request the moderator to open the floor for questions. Thank you. 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 touchtone 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. The first question comes from the line of Abhijit from KIE. Please go ahead. Yeah. Good afternoon. Thank you so much, and congratulations on the very strong results. Thank you. Just on the new CDMO products that you mentioned, which will begin contributing in H2. Any sense you could give us on the revenues that we should expect in this financial year itself? When we are speaking about this target of doubling CDMO revenues in the next three years, how much would be the contribution of these newer products within that target? I am afraid that I will not be able to share the product-wise revenue guidance. That is the reason we are saying that we are very much confident to close this year with a INR 1,000 crore revenue in CDMO segment, because we have already got some good orders for some of the products which were already validated a few quarters back, and now we are getting the orders. We see a very good new business opportunity in this new CDMO as well as some of the CDMO pipeline, which we are expecting to get a good revenue generation in coming quarters and years. That is the reason we are giving the INR 1,000 crore, INR 2,000 crore kind of guidance for next three years. But I am afraid I will not be able to share any product-wise revenue bifurcation. Okay, got it. Just maybe the number of products that you have that are getting commercialized this year. Could you talk about that? There are multiple products. As we said, the four products were already kind of validated a few quarters back, and there are additional products which are getting commercialized this year. There are eight to nine products in total, you can say that these are getting into revenue stream in next one and a half year time. Understood. The other one I just had was on the specialty chemical side. Of the key growth projects you have there, battery chemicals, semiconductor chemicals, and now this electronic grade. Could you please help us with the timeline for commencement of revenues from each of these and what sort of trajectory we should expect from each of these? As we said last time that now we are phasing out some of our old legacy product related to parabens and MS. Those are getting replaced with some better margin and a futuristic product. In that context only, we have announced the CapEx related to bulk electronic grade chemical manufacturing. As we just announced the CapEx, it will take one and a half year time to get the CapEx to get completed. So maybe by H1 FY 2029, we should be starting the production. Meanwhile, the battery products have already started contributing in the revenue pie, and that's an encouraging signal especially our specialty chemical business side. Okay, got it. Thank you so much. I'll get back in the queue for any more. Sure. Thank you. Thank you. Participants who wish to ask a question may press star and one on their touchtone telephone. The next question comes from the line of Aditya Iyer from HDFC Securities. Please go ahead. Hi, am I audible? Yes, sir. Yes. Okay. Congratulations on this great set of numbers. For the existing CDMO business, what kind of traction are we seeing for darolutamide in terms of product adoption, and what kind of revenue potential do we expect from this molecule in the near future? For darolutamide, we are not in position to comment anything about that product because it is not our product. It is an innovator-driven product, and that is very well covered in the market. For that, I think it is better you refer all those already available public market information. What we are saying that based on the customer's requirement of that particular product as well as the other customer, based on that, we are guiding that our CDMO revenue should get doubled in next three years' time. Okay. For our Ankleshwar unit, what is the total amount that we invested and the utilization as of H1 FY 2027? For Ankleshwar unit, we have invested INR 330 crore. Utilization level for Q2 FY 2027 was 30%. By FY 2028, we are expecting peak utilization progress. Yes, it should largely get filled up by FY 2028. In this electronic grade chemical, when we say it, do we mean battery grade or semiconductor grade chemical? Both. It will be a kind of trajectory will move forward for various grades. Okay. So [50, 1:1] mix or what is it? Sorry? Is it 50/50 battery semiconductor grade or? No, as of now we are only going with the electronic grade chemicals. Going forward, we will have additional plan, but it will be starting with electronic grade chemical only. Okay, thank you, sir. That is it from me. Thank you. The next question comes from the line of Mr. Siddharth Gadekar from Equirus Securities Private Limited. Please go ahead. Hi. Sir, the first question is on the electrolyte business. When we historically spoke about this business, the realization for these products were closer to $10, $12. But in the last six, seven months, if you look at the prices, they have moved up to $30, $35 plus. How should we think about this business going ahead in terms of the realization and margin? Right from beginning, we are saying that we have already signed long-term supply contract in place. Based on that contract, we get the revised pricing based on some of the key raw material price movement as well as the exchange rate fluctuation. We are not riding on some of the waves wherein price fluctuation, we don't want to get benefit from those price fluctuation or when it gets down, we get down. It is more of we look into our plate and we get our good profit, wherein we get a timely payback of our investment and then look for a newer project. This is our policy philosophy, what we are following. Okay. Sir, so from a modeling perspective, when we look at the revenue potential from these projects, should we assume like an asset turnover or they would be more closer to spot prices given that raw material prices also could be volatile? No, for the understanding of your thing, as you know, it was near to double-digit kind of dollar value. So there will be additional some of the realization because of price movement, but it will not be $30, $35 kind of pricing. It can be early teens kind of pricing scenario. Okay. Sir, second question on the electronic chemical business. Given that it seems like a 2x asset turnover, where your realization are closer to $1-$1.5. Can you give some sense on what kind of product this is and what would be the major end applications? It would be more like a commodity chemical or a niche molecule in this space? First thing, we are not saying it is a kind of 2x kind of asset. It will be at least 3x kind of asset and we are expecting there. We have not commented anything on the realization side. But what we are saying is it will be a kind of bulk electronic chemical and solvent products. Okay, got it. Sir, and timeline for this still remains FY 2029? Yes, first half of FY 2029. It will take around one and a half years to get completed in CapEx. Sir, and the last question is on the CDMO. Sir, when do we expect the next round of CapEx, given that now we have given a guidance for INR 2,000 crores by FY 2030? Next round of CapEx, as we just discussed that plant utilization at Ankleshwar may get filled up by year 2028. That's the reason we are already starting with our future plan, and that is for land acquisition. Then we'll plan for the next round of CapEx. That size and scale we'll decide based on that. Okay, sir. Thank you so much. Thank you. The next question comes from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead. Yeah, thank you, and congratulations on sustaining strong execution yet again, Naresh bhai. My questions are, first, as the Korea semiconductor facility moves from qualification into commercial ramp-up in next fiscal, should we expect the initial economics to be somewhat lower at the company level, given utilization and startup costs before improving as the volumes scale up? What would need to happen for the business to reach its targeted steady-state economics? That's my first question. Thank you. The plant was inaugurated last quarter only, and now it's a time to first get the customer qualification process going. That's the reason for this financial year, we are not giving any tall commitment. From next financial onward, only it will have some revenue coming up. Obviously it will not be a kind of huge revenue or profitability. It will slowly ramp up. But the encouraging thing is we are getting a very good customer inquiry. We are already started submitting the sample as well as the pilot scale dispatches, and that's the kind of confidence we can get from that newer geography where we are operating. Sure. Helpful. And second, as CDMO programs move from launch into commercial scale, as you just highlighted, there can sometimes be an initial inventory build followed by normalization. Given the revised INR 2,000 crore CDMO target by FY 2030, how confident are you that this growth will increasingly be diversified across multiple customers and multiple molecules rather than concentrated in one or two molecules? If you could just broadly mention how many programs do you expect would be material contributors in, let's say, FY 2028? As we already discussed that we have multiple products for which the validation batches were already submitted a few quarters back. Now they have started giving the contribution in terms of commercial revenue, and there are eight, 10 products already in pipeline. That's the reason we are very confident that we will be again able to achieve this second milestone of INR 2,000 crore revenue by FY 2030. Despite of any industry cycle moving up and down, we are confident that we will achieve those kind of revenue targets. Excellent. Sir, just to clarify, the second INR 1,000 crore, so INR 1,000 we will achieve this fiscal. The second INR 1,000 crore will be a lot more diversified and broad-based in terms of molecules and customers, right? Yes, absolutely right. Yeah. Thank you. That's all. Thank you. The next question comes from the line of Nilesh Ghuge from HDFC Securities. Please go ahead. Yeah. Thanks for the opportunity. Just one question. When we are saying INR 1,000 crore of revenue in FY 2027, so what will be the utilization of our CDMO unit at Ankleshwar? As you mentioned, there is no further CapEx required till INR 2,000 crore CDMO revenue. So what will be the utilization in FY 2030 when we achieve CDMO revenue of INR 2,000 crore? So for last quarter, as we said, it was a utilization of 30%. So when we reach end of this financial year, it should not be more than, let's say, 40% of the total utilization at unit two, Ankleshwar. For the future, it is difficult to say as of now because it's a function of multiple things, the volume, the realization, and the kind of processes. Okay. Thanks a lot. Thank you. The next question comes from the line of Parth Dalia from Union AMC. Please go ahead. Yeah. Hi. Thank you for the opportunity. I just had one question. This is specifically on darolutamide. Bayer's recent trial showed that the risk of metastasis or death by 58% in high-risk localized prostate cancer. If this goes into approval, without going into product specifics, how do we think about the volume opportunity if that indication expansion comes through? Directionally, do you have the capacity and contractual framework in place to support that meaningful step-up of volumes over the next two to three years? As you know, we are an intermediate supplier for this API called darolutamide, and what you are talking about is the formulation market and their indication. At least being at the bottom of the pyramid, we are not able to comment anything on those programs. This is good for you or the market to understand how the products are going. For us, what we track is what we are getting from the customer, and we should be the beneficiary, whatever our customers is gaining in the market. That is what we see, that we are getting a good traction in this product, as well as for the next three years. That is why we are giving the good guidance also. Understood. Got it. But just extending in question to, let us say, if Bayer, for the formulation opportunity, are there upside estimates, do you reckon that? Sorry? Your voice is breaking. Sorry. Is it better now? Yeah. I will just follow up on that question. Let's say to the innovator sales, the formulation sales, does this trial lead to a meaningful upgrade in their numbers? We do not. We are not very well placed to comment on whether their formulation market is how much they are growing. I think that we will not be able to comment on this. Okay, no problem. Thank you so much. Thank you. A reminder for all the participants. Participants who wish to ask questions may press star and one on the touchtone telephone. The next question comes from the line of Rohit Nagraj from 360 ONE Capital. Please go ahead. Yeah. Thanks for the opportunity, and congrats on a very strong set of numbers. Thanks. First question is on the CDMO front. So the INR 2,000 crore guidance for FY 2030. In terms of EBITDA margins, would it track the current margins on INR 1,000 crores, or would there be some kind of a dilution that we're expecting? Thank you. Largely, it should be in the same range, what we are getting for the CDMO business as on date. Sure. The second question is on the semiconductor chemicals. Given that our plant is operational, we are probably sending the validation batches to the South Korean players. Are we also engaged with any of the Indian counterparts for validation? Are there any immediate plans of, if not, are there any immediate plans of serving them? Thank you. When you say Indian, that means you are talking about Indian semiconductor manufacturing. You are referring to Indian semiconductor industry? Yeah. So the ecosystem which is getting developed now, and which probably will be operational over the next couple of years. So as of now, whatever we have planned the capacity, that is for Indichem, it is a Korean ecosystem, and then after outside Korea geography like Japan and Taiwan. From India, Baba Fine Chem, again, because this ecosystem is yet not that matured, and we have already market available in the export market. That is the reason we are targeting more of a Korea, Japan, U.S. market only. That is where we are getting very good traction also. In future, when this ecosystem gets developed, we would be happy to part of that, but as of now, all our capacity as well as the business development largely focus on the exports market only. Sure. Just one clarification. In terms of products, once they get validated from our international customers, would it be relatively easier and with a shorter period of timeframe to validate for the Indian counterparts? Let me answer this. Customer validation is their internal process. It is not that one customer, big customer's approval means that that product can be used by someone else immediately. Because their process and their requirements are different. So the validation process is robust, time-consuming, and it is long-term. But beauty is that Acutaas and Indichem has a capability to produce very high-end chemicals, and our process is validated, our manufacturing side is validated. That will help us to consider our Indian customer based on the experience what we have. So that really gives us an advantage against the other competitor of ours. Perfect, sir. Thanks a lot for answering all the questions, and all the best. Thank you. Thank you. The next question comes from the line of Bharat Shah from Bharat Shah Capital Ideas Private Limited. Please go ahead. Naresh bhai, hearty congratulations to you and Acutaas team. Thank you, sir. Thank you, Bharat bhai. Thank you. I just wanted to have two important views. Over last three to four years, we have made a considerable progress in converting the shape of our pharma, from commodity chemicals to the specialty, and from limited relationships to more customer and sticky long-term relationships. Our margins, top line, and capital efficiency all reflect the painstaking work of the past. Now that we will be staying and a good part of the CapEx for the future is under our belt. When you look at next five years, what are your key aspirations, and what are the milestones with which you will like to define Acutaas or Ami's journey ahead? Secondly, as you stand at this important juncture where we have made a considerable progress, but many more important milestones are lying ahead. What are your key apprehensions or challenges that you perceive? Bharat bhai, thank you first of all for seeing our journey right when we started in IPO 2021 till today. You are always inspiring and motivating us. It is the journey which is now bringing the fruit of what we had done in last one decade and transforming family company into the structure and professional company, focusing on each area, starting from raw material secure to process strengthening, to operational efficiency, to manpower, upgrading technology implementation, process improvements, plant automation, and at the end of the day, customer satisfaction. This is a cumulative effort of our last one decade working, which is giving fruit now. Regarding what you say, the inspiration for next 5 years, I have a visibility for the generic, as so many time I say that we have developed lot of molecule which having an expiry up to 2045. This is how we are working in our research department for generic portfolio strengthening. Whereas for regulated market, we have a long-term agreement with several customers, and that is also helping us to guide for next three years. We had revised our CDMO target from INR 1,000 crore- INR 2,000 crore based on this new CDMO as well as the old CDMO pipeline. Considering transforming company from a pharma to specialty chemicals and multi applications for the chemistry. Now, as I said, when we made, it was a very primary stage of the battery chemical. Now it is almost mature and having very strong traction from the customers. Long-term orders are pending with us, and now its commercial supply also started. Slowly it is ramping up and is now self-sustained. The second stage is the semiconductor segment, which is very important for us because it is a very The beauty of semiconductor business is that everybody cannot start today and enter in the market because it is a very technical driven, very high purity chemical production, and very customer sticky business. That is helping us by acquiring Baba Fine Chem has opened our door right from the first day into the ecosystem. Then this ecosystem has teach us how to go for the more pure material, and that is how we put Indichem in South Korea. It is like business is teaching us, and we are learning very quickly, and we are implementing also very fast. This experience also helping us when there is an ecosystem start in India. For today, there is no any demand for semiconductor chemical India because they have not really started. But once the phase will start, we are one of very few out of them having all the experience of very high pure chemical production, and that will help us to immediately cater the market in India as well. This is how our aim is that in five years, this would be not known as a pharma company, but as a chemical company having multiple avenues which can supply chemical in a different sector. What your opinion are tangible and more qualitative aspirations that you believe Acutaas Chemicals is likely to fulfill in the upcoming five-year journey? What possible apprehensions that you carry in your mind or concerns about potential challenges? Let me just give some internal message at our end. As Naresh bhai shared his vision that he want to create an organization which is not only focused on a pharma chemical, but then we are getting into the multiple chemistry related to battery, related to semiconductor, related to electronics, and there are other multiple areas where we are already working. For us internally, as tangible, we work on, let's say, on a various parameters related to the capital deployment, the ROI. Ultimately, the business has to be self-sustained, standing on its own feet, as well as generating a long-term cash flow and sustainable growth in the future. Like for the battery chemical, we started with two products, then we keep on adding multiple there. The third and fourth products are already commercialized. Then it should generate a good cash flow every year. Then comes the sustainability. In terms of sustainability, what we are doing is we are building a very good, healthy customer relationship, by not focusing as we discussed in last question only, that we are not riding on those $30, $35 kind of pricing wave, rather than we are focusing more on the customer relationship. So this is how we want to convert this business into long-term sustainable cash generating machine, and that is what we are focusing for each and every business what we are targeting. It's not that we start the business today, we run for three years, and then we want to just let it can go down. It has to be sustainable, long-term business only. That is what we are focusing on each of those businesses. Concerns, if any? The concerns are always there, Bharat bhai, and we have to find out the way out of the concern. There are geopolitical issues, supply chain, logistic, operational, electricity, water. There are so many concerns that are always coming. We have to find out the way out of that. That is what we are doing day-to-day operation. For like semiconductor ecosystem is happening in India, if it is delayed, it will be a delayed of implementation in India. Similar kind of opportunity are also It is a huge opportunity for Indian chemical manufacturer in India as well as abroad. Whatever the current mindset of China free is helping Indian chemical manufacturer on their own capacity to grab the opportunity which is available. Sometime you grab lot of opportunity, but you cannot able to grow all because of the competition as well. These all things have to be considered, and this is what we do. Whenever we enter into segments, we first analyze everything, whether it is good for us, sustainable for us, long-term, what will be the situation of the market and all, and then we enter in that segment. This is what we try at most that all the concern need to be covered, but then, if unexpected will come, that will be able to face that. Sure. Just one last thing. We have come a long way over last few decades, from Ami to Acutaas, and we built lot of tremendous strengths. Even as we still remain relatively rather modest in the size of turnover in business, but rapidly progressing. Would you, Naresh bhai, say that the coming decade will be the most defining And probably most momentous decade in the kind of future that you visualize, given the opportunity in this space. Absolutely, sir. That is what I said, that last decade was our foundation year, a decade where we done lot of seeding. Now this seeding one by one is giving us the fruit. Now for the next decade will be the more important decade for us in terms of getting fruits out of whatever we seeded in last one decade. Sure. Thank you, Naresh bhai. All the very best and to the entire Acutaas team for the tremendous transformation of the firm. Thank you, Bharat bhai. Thank you very much. Happy Diwali. Thank you. The next question comes from the line of Pratik Dharmshi from Union Mutual Fund. Please go ahead. Yeah. Thanks for giving the opportunity. Many congratulations, Naresh bhai, Abhishek bhai, for a splendid set of numbers. My question is on the new CDMO projects which you are working on. You mentioned, initially you used to mention around four new projects or CDMOs you are working, and now the number has gone up to seven, eight. Some color on the therapy would be really appreciated. Apart from, you used to mention around INR 50 crore each sort of a molecule. Is the run rate similar or you are expecting some change to it? Is it accelerating based on now the commercial supplies are starting? Some more color on it would be really helpful. Thank you. For CDMO projects, because these are all innovator-driven projects, we are not able to at least share any details related to their product or their therapeutic segment or their potential. But as we generally say that for the non-blockbuster product, INR 50 crore- INR 100 crore is the kind of range because that's the kind of revenue we can get it as an intermediate player. But as Naresh bhai mentioned, there are some of the very exciting projects already going on and we say has a better revenue possibility, and that gives the confidence that it will be a good growth engine in future also, in terms of newer CDMO projects. Got it. Yep. Thank you and all the best. Thank you. Thank you. The next question comes from the line of Meet Vora from JM Financial. Please go ahead. Thanks for the opportunity. Sir, what gives us the confidence to increase our EBITDA margin guidance to 38%-40% beyond FY 2027 on a sustainable basis? Because this quarter we have mentioned in our presentation that higher margins are led by gross margin and operating leverage. Will this operating leverage continue going into FY 2028 as well? Or maybe this upgrade is more to do with higher contribution mix from CDMO. First thing, at material or the gross level, the margins are always function of the product mix. As you see that just our battery chemical business has just started in this quarter. That's the reason the large portion of the revenue is coming from the pharma intermediate and growth is driven by CDMO segment. That is where the high margin is coming and with the kind of order books we have already in place for H2 FY 2027, we are confident to achieve this INR 1,000 crore mark with converting the good kind of margin for FY 2027. That's the reason we have raised our margin guidance. Related to operating leverage, obviously as and when this revenue keeps on increasing within the same premises or the facility, the operating margin has to kick in. As we just mentioned, the 30% utilization level at unit two and obviously the very low utilization level at our battery chemical business. The operating margin will keep on adding once those production level scales up. This 38%-40% EBITDA margin guidance is for FY 2027 or this continues for 2028? FY 2027. Oh, okay. Yeah, that is it from my side. Thanks a lot and best of luck for coming quarters. Thanks. Thank you. The next question comes from the line of Sidharth Negandhi from CWC. Please go ahead. Hi, congratulations on a great set of numbers. Three questions from my end. On the pharma intermediates business, you mentioned that CDMO could achieve INR 1,000 crore in FY 2027. Could you help us understand how much of that is already in the bag in H1, which is your pharma intermediates business, the innovator and generic split? That is question one. The second question was on Daro. Can you potentially double the supply from the same facility over the next two years, or will you need CapEx? What is your current utilization and your wallet share in this? The third question was on the base business in specialty chemicals. How many more quarters before the commodity chemicals completely go off business and most of this will be the battery chemicals and the other specialty chemicals? Yeah, these were my three questions. Related to CDMO, first thing, we are not doing any generic work. We are doing all the CDMO projects with the originator only. These are all originator business, no generic piece over there. Question related to what is in our bag. As Naresh bhai already mentioned, this INR 1,000 crore mark guidance for this financial year is based on the customer visibility and the contracts in place. That is very good, definitely achievable target for us. Your second question related to the kind of split in the business or the market share, we are not able to comment on this because we only see what originator gives us as a business, and that is what we are guiding. We are not concerned about who are getting what. Third question related to specialty chemical business. See, we have already started scaling down this old legacy product related to parabens and MS. It takes some time because right at upfront we cannot say no to the customer because they also need to develop their alternative vendor and supply line. That is the reason it may take around one and half year to scale down this business. MS business, we may continue for some time because there are some good customer already in place, so it may take some time beyond one and half year also to scale down MS business. Got it. Sorry, just a clarification on the first one. What I meant is not that CDMO is generic. What I meant is, if I look at the advanced pharma intermediate segment, part of that is CDMO business, and part of that is base business. If you could help us with that split. Okay. Sorry. We are not giving those split also. We see completely as a pharma intermediate business only. Okay. But definitely it will cross the INR 1,000 crore mark as we already committed for the year. But when you say INR 1,000 crore crossing in that business, you mean not for the advanced pharma intermediate segment, only CDMO within that and outside of the base business. Yes. Right? Yes. Got it. Clear. The second one, while clear on you not looking at wallet share, could you give us some color in terms of Daro, if you have to potentially double the Daro supply, will that need more CapEx? Where are you in terms of utilization of the facility there, and how should one look at that? As we said, the capacity utilization is 30% only, so there is some room available, but we are not disclosing anything about whether it is sufficing the production requirement or not. Okay. Very clear. And last question on the South Korea facility. What are the markets that you will target for supply from this facility? Will it be Korea, Japan, primarily? Are you looking at some cell manufacturers in India or Southeast Asia also? How should one think of that business? For Korea, it's a semiconductor business, so our target customer are photoresist and the fab industry and the semiconductor consumption industry. It's not a kind of cell manufacture and largely because those are based in Korea and Japan. Got it. Sorry. These are our potential customer market. Understood. Sorry. Got it. Thank you very much, and wish you all the best. Thank you. The next question comes from the line of Juhi Kumari from Narnolia Financial Services Limited. Please go ahead. Hi, Juhi. Yeah. Thanks for the opportunity, and congratulations on the strong set of numbers. My first question is regarding the battery electrolyte additives production. It was expected to start in second quarter FY 2027. Just wanted to know that, has the commercial supply begun, and what was the revenue contribution during the current quarter? We have already started commercial supply for VC and FEC as well as the third product also, ahead of the time. The fourth product, the validation batches are already being supplied from a pilot scale. Revenue contribution, we are not disclosing. It is just a start, and the ramp-up is expected in next two to three quarters. Okay, sure. Thanks. My second question is regarding what portion of the remaining INR 349 million specialty chemical revenue is still comprised of commodity chemicals scheduled for exit? Once this phasing out is complete and BFC normalizes, what is the steady-state quarterly revenue expectation from specialty chemicals? For specialty chemical, we are not giving any split between old traditional specialty chemical product or the battery chemical. It will remain in this territory with a ramp-up from the battery chemical business. Oh, okay. Overall, there will be a growth as against what number we have reported last financial year. Okay. We expect this to remain in a state where it has been in the first half FY 2027? Yes. Okay. Just one last question about the gross margin expansion that has expanded significantly to 62.1% this quarter. How much of this expansion came from raw material prices softening versus a structural shift in product mix towards higher margin? Our gross margin expansion is a function of both product mix as well as the raw material. In total, we cannot bifurcate between the raw material price escalation or the kind of product mix. It is a function of both. Okay, is there any leverage that we have got from raw material price softening this quarter? No, we are not seeing that raw material price has softened in this quarter. In fact, that is definitely not the case. Okay. Yeah, thanks for the answer, and all the best for the coming quarters. Okay. The next question comes from the line of Basant Bansal from NBG Investments. Please go ahead. Yeah, good evening, Abhishek. My question to you is that in the first half, our pharma revenue is INR 695 crore. Can you tell me out of INR 695 crore, how much is CDMO? INR 695 crore? I did not understand. INR 695 crore. INR 695- Sorry? INR 695 crore is our first half revenue vertical. Sorry, your voice is a little echoing. You are saying out of INR 695- No, I am seeing your slide number six, wherein the revenue from pharma intermediate vertical is shown as INR 695 crore. I want to know out of this, how much is CDMO? Okay. Sorry, we are not disclosing those split, but in sub-segment of this pharma intermediate business. Okay. Can you tell me in percentages terms, if possible? No. Again, it's the same thing, sir. Same thing. Okay. No problem. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to the management for closing comments. Over to you, sir. Thank you, Equirus team, for hosting our conference call. We appreciate everyone's question and hope we have addressed most of your queries. If we missed any of your questions, please reach out to our investor relations team and we will get back to you promptly. Once again, thank you very much and happy festivals. Thank you. On behalf of Equirus Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.