Camlin Fine Sciences (CAMLINFINE) Q3 24/25 earnings summary

Executive summary

• Revenue increased year-over-year and sequentially, with Q3 FY25 consolidated revenue at Rs. 4,334.9 mn and gross margins improving to 50.1% from 48.2% in the previous quarter.

• Adjusted EBITDA margin rose to 12.3% in Q3 FY25, reflecting operational improvements, while ongoing restructuring and exceptional items led to a net loss of Rs. 142.8 mn.

• Rights issue completed in January 2025, raising Rs. 224.68 crore, with proceeds used for debt repayment and liquidity improvement.

• Vitafor Group acquisition in June 2024 contributed to revenue growth and expanded presence in animal feed markets.

• Board approved unaudited results and corporate actions, including ESOP scheme modification and independent director appointment.

Financial highlights

• Q3 FY25 revenue from operations was Rs. 4,334.9 mn, up 12.3% year-over-year and 2.5% sequentially, with gross margin at 50.1%.

• Adjusted EBITDA for Q3 FY25 was Rs. 531.9 mn, up 23% sequentially and 163.5% year-over-year; EBITDA from continuing operations (excluding Europe, China, and exceptional items) is about INR 70 crore.

• PAT for Q3 FY25 was Rs. -142.8 mn, with consolidated net loss after tax at Rs. 973.00 lakh, reflecting restructuring and exceptional items.

• Europe operations incurred a loss of INR 16 crore this quarter; nine-month loss at INR 45 crore.

• Interest costs increased due to foreign currency borrowings and rupee depreciation; average interest rate is 9.5%-10%.

Outlook and guidance

• Focus on expanding high-margin blends and additives, with tailored solutions for food, pet food, biodiesel, aquaculture, and livestock industries.

• Vanillin plant expected to reach 70% capacity utilization by year-end and 75% in FY 2026, with potential to ramp up to 100%.

• Blends business expected to continue 15%-20% annual growth, with new customer acquisition as a key driver.

• Europe fixed costs to reduce considerably from Q1 FY 2026 as plant wind-down completes.

• Vitafor integration to drive substantial growth in blends from FY 2026.