Camlin Fine Sciences Limited , a leading manufacturer of specialty chemicals and blends, reported a revenue of Rs. 460.00 crores for the second quarter of fiscal year 2026, marking an 8.6% growth compared to the previous quarter. The company's performance was driven by increased volumes in trades, blends, and vanillin segments, despite facing realization pressures from US tariffs.

Key Highlights

• Revenue reached Rs. 460.00 crores, up 8.6% quarter-on-quarter
• EBITDA improved to Rs. 33.00 crores with a 7.27% margin
• Vanillin sales volume increased by 35% compared to the previous quarter
• Blends business grew by 8% in the quarter

Segment Performance

Vanillin Segment

The company reported a significant 35% increase in vanillin sales volume compared to the previous quarter. However, realizations were under pressure due to the 50% tariff imposed on Indian exports to the US. Camlin Fine Sciences is currently operating its vanillin plant at 50-60% capacity utilization.

Blends Business

The blends segment showed resilience with an 8% growth in the quarter. The company has strengthened its marketing team across regions, including the US, Brazil, Europe, and India, to support future growth in this segment.

Trades and Straights Business

The company experienced volume growth in its trades and straights business, particularly in TBHQ and BHA products. However, the segment faced realization pressure due to increased local competition in India.

Outlook

Camlin Fine Sciences provided guidance for the coming year:

1. Vanillin Sales: The company aims to achieve 4,000 tons of vanillin sales in the next fiscal year.
2. Blends Growth: Management expects the blends business to grow by 20% in the coming year.

Market Challenges and Strategies

The company faces challenges from US tariffs and channel inventory in both US and European markets. Management expects the destocking in the US to be completed by Q4 of this fiscal year and in Europe by Q1 of FY27.

To address these challenges and drive growth, Camlin Fine Sciences is:

1. Expanding its sales force, having added 31 new employees in the last quarter
2. Pursuing inorganic growth opportunities, with an acquisition in France expected to be completed soon
3. Focusing on optimizing capacity utilization to improve cost efficiency

Management Commentary

Nirmal Momaya, Managing Director, stated, "We are on track for the growth which we have been projecting in blends. For vanillin, we are good for the 2,500 tons target this year, and for blends, we are okay with the 18-20% growth we've been projecting."

Camlin Fine Sciences remains cautiously optimistic about its future prospects, balancing the challenges posed by global trade dynamics with strategic initiatives to drive growth across its key business segments.

Camlin Fine Sciences Limited (CFS), a leading specialty chemicals manufacturer, has reported a significant 41% year-over-year increase in its vanillin segment, showcasing the company's strong performance in this key area. The company is now setting its sights on margin revival and growth in high-value blends and aroma ingredients.

Vanillin Segment Drives Growth

The 41% growth in the vanillin segment underscores CFS's strong position in the flavors and fragrances market. This impressive performance comes despite challenges such as channel stocks and tariff impacts, which affected realizations during the period.

Strategic Focus on High-Value Products

CFS is strategically targeting growth in high-value blends and aroma ingredients. This focus aligns with the company's forward integration strategy, which aims to shift its business model towards higher-value additives and solutions.

Global Expansion and Market Penetration

The company is actively expanding its marketing presence across key geographies. This expansion is supported by a strong order book in blends, indicating positive market reception and potential for future growth.

Margin Recovery and Future Outlook

While the growth in the vanillin segment is impressive, CFS is also focusing on margin revival. The company expects tariff-led margin recovery in H2FY26, which could potentially boost profitability in the coming quarters.

Acquisition-Led Growth Strategy

CFS has outlined an acquisition-led growth pipeline, suggesting that the company is open to inorganic growth opportunities to complement its organic growth strategies.

Financial Performance

For the quarter ended September 30, 2025, Camlin Fine Sciences reported the following consolidated financial results:

While revenue showed growth, the company faced pressure on margins, as reflected in the lower EBITDA and EBITDA margin compared to the same quarter last year. However, the net loss has significantly narrowed year-over-year.

Conclusion

Camlin Fine Sciences' strong performance in the vanillin segment, coupled with its strategic focus on high-value products and global expansion, positions the company for potential growth. The anticipated margin recovery and acquisition-led growth pipeline suggest a positive outlook, although challenges in maintaining profitability remain. Investors and industry observers will be watching closely to see how these strategies translate into financial performance in the coming quarters.