Camlin Fine Sciences (CAMLINFINE) Q3 25/26 earnings summary

Executive summary

• Q3 revenue was INR 572 crore (Rs. 4,572 mn), up 6% YoY, with blends segment growth and new revenue from the Vinpai acquisition.

• Vanillin sales were 490 tons (INR 55 crore) at $12.5/kg, with a strategy to delay some sales for higher realizations as tariffs drop.

• Profitability was impacted by pricing pressure in Straights and tariff-related challenges in Vanillin.

• A major fire at a Brazil blending unit resulted in inventory and equipment loss, with operations continuing via another unit and tolling arrangements; insurance is expected to cover losses.

• Liquidation processes for European and Chinese subsidiaries are underway to halt ongoing cash losses and improve future profitability.

Financial highlights

• Q3 consolidated revenue: Rs. 4,572 mn (+6% YoY); 9M FY26: Rs. 13,406 mn (+9% YoY).

• Gross margin for Q3 was 45.8%, down from 46% in the previous quarter, mainly due to lower realizations in the straights (antioxidant) business.

• Adjusted EBITDA for Q3: Rs. 307 mn (margin 6.7%); net loss after tax for the quarter: Rs. 3,622.99 lakh.

• Exceptional items included acquisition costs, labor code alignment, and a provision for an old advance loan.

• Discontinued business losses were INR 9 crore for Europe and INR 1 crore for China in Q3.

Outlook and guidance

• FY 2027 vanillin sales guidance is 4,000 metric tons, with 60% to the U.S. and 40% to Europe; expected average realization in the U.S. is $14–$14.5/kg if tariffs remain at 25%.

• Blends business is projected to grow 25% in FY 2027, with Vitafor and Vinpai each targeting 40–50% topline growth.

• Gross margin is expected to improve to 46–47% and EBITDA margin to 12–14% in FY 2027, driven by higher vanillin realizations and blend growth.

• Revenue guidance for FY 2027 is INR 2,200 crore and for FY 2028 is INR 2,400 crore, assuming current price levels.

• Management continues to monitor regulatory changes and operational risks, including the impact of new Labour Codes and ongoing legal and insurance proceedings.