#Company #Outlook
The company expects sales growth of ~20% CAGR over the next 3 years mainly driven by ATBS, antioxidants and other products from Veeral Organics Private Limited (VOPL). • Themanagementanticipates EBITDA marginof ~26%-27%on a sustainable basis. • Inantioxidants, the company focuses on optimizing efficiency and ramping up sales in the coming months. It expects this business to be agrowth driver for the company. The company expects to reach full capacity utilization in the next 2-3 years. It is also actively working on adding more antioxidants in its portfolio. • In antioxidants business, the company expects sales of ~₹280-₹300 cr in FY25. It expects capacity utilization of ~50% in FY25. Antioxidants business is expected to be a growth driver for the company. The peak revenue potential of antioxidants business is ~₹700 cr. • Veeral Organics Private Limited (VOPL) is a 100% owned subsidiary of Vinati Organics Limited for manufacturing niche specialty chemicals. The total capital expenditure in VOPL will be ~₹500 cr mainly consisting of MEHQ (Monomethyl ether of hydroquinone), Guaiacol, 4-Methoxyacetophenone, Isoamylene Derivatives, as well as Anisole. These products are use in polymerisation inhibitors, flavours & fragrance, pharmaceuticals and personal care. The asset turnover would be ~1x and blended margin would be ~20%. • Thetotal capacity for MEHQ is 2,000 tons per annum, Guaiacol 1,000 tons, anisole 5,000 tons, 4-methoxyacetophenone (4-MAP) ~1,000 tons and Iso Amylenederivatives ~10,000 tons. • Currently, the management efforts are concentrated on product sampling and enhancing the plants yield and efficiency. The meaningful revenue contribution from the MEHQ and Guaiacol plant is expected from FY26 onwards. Additionally, the remaining products under capital expenditure are scheduled for commissioning in H2 FY25.
• The company commissioned the Ortho-sec Butyl Phenol (OSBP) and the Di-sec Butyl Phenol plant (DSBP) in Q3 FY24. These products find application in agrochemicals, polystyrene, perfumery, and liquid solvent dyes. The company is the only manufacturer of these products in India and expects revenue of ₹80 cr at full capacity. • TheATBScapacity expansion from 40,000 to 60,000 metric tons per annum is proceeding well. The expanded capacity is expected to come onstream from FY26onwards
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1August 31, 2026 887
