NOCIL Q2 CONCALL: TARGETS UPPER END OF ₹1,400–1,600 CR FY27 REVENUE GUIDANCE, 8–10% VOLUME GROWTH & 10% EBITDA MARGIN; EXPECTS H2 RECOVERY, TDQ CAPACITY COMMISSIONING & EXPLORES ACQUISITIONS

• FY27 Revenue Guidance: Management reiterated its revenue guidance of ₹1,400–1,600 Cr and expects to finish FY27 toward the upper end of this range. • Revenue Upside Potential: Management indicated that FY27 revenue could exceed ₹1,600 Cr at current selling prices, depending on H2 volume recovery and market conditions. • FY27 EBITDA Margin Guidance: Management maintained its target of approximately 10% EBITDA margin, acknowledging some conservatism given the uncertain operating environment. • FY27 Volume Growth Guidance: Management expects 8–10% full-year volume growth, supported by domestic demand recovery and new international business opportunities. • H2 FY27 Volume Outlook: Management expects a significant improvement in volumes during H2, targeting a quarterly volume index of approximately 160–165 against the Q1 FY20 base of 100. • FY28 Volume Outlook: Management indicated that approximately 10% volume growth is a reasonable assumption for FY28, subject to market conditions. • H2 Production Recovery: Management confirmed that the supply-side disruptions affecting Q2 have been addressed and expects production and dispatch volumes to improve. • Domestic Demand Outlook: Management expects continued support from tyre replacement demand, OEM growth and consumption benefits following GST 2.0. • Export Growth Outlook: Management expects international customer engagements and new business conversions to support higher export volumes during H2 FY27. • Q3 Realization Outlook: Management indicated a marginal increase in selling prices during Q3 compared with H1 FY27 levels. • Brownfield TDQ Expansion: Company's TDQ capacity expansion at Dahej has progressed ahead of schedule and is awaiting approvals from certain tyre customers. • TDQ Commissioning Timeline: Management expects the TDQ expansion to be capitalized during Q3 FY27, subject to customer approvals. • TDQ Project Depreciation: Management estimates additional depreciation of approximately ₹1 Cr per month, or ₹3 Cr per quarter, on the ₹220 Cr project. • Specialty Rubber Chemicals Expansion: Work on the integrated specialty rubber chemicals project is progressing according to management's planned schedule. • FY27–FY28 Capex Outlook: Management indicated approximately ₹130 Cr of board-approved expenditure across FY27 and FY28, in addition to routine maintenance capex. • Capex Spending Timeline: The approved expenditure is expected to be spread across H2 FY27 and H1 FY28, with some amounts already spent. • Acquisition Plans: Management is actively exploring inorganic growth opportunities in the chemicals sector to diversify its portfolio and utilize available cash resources. • Manufacturing Efficiency: Management expects improved capacity utilization and higher production volumes to support operating leverage during H2 FY27. • Captive Power Benefits: Management expects benefits from captive power boilers and turbines to increase during H2 as production volumes recover. • Conversion Cost Outlook: Management expects some operating leverage benefits in H2, although higher coal, gas and freight costs remain key pressures. • Raw Material Cost Pressure: Elevated crude oil prices and geopolitical tensions have increased input costs across the rubber chemicals value chain. • Freight Cost Pressure: Higher domestic freight and sea freight expenses affected conversion costs and profitability during Q2. • Anti-Dumping Duty on Sulfenamides: Management confirmed some benefit from anti-dumping protection during Q2 but indicated that its overall financial contribution was not significant enough to quantify separately. • Anti-Dumping Benefit in Q3: Management indicated that the sulfenamides duty benefit applied for only part of Q2, implying a longer period of applicability in Q3. • 4-ADPA Anti-Dumping Investigation: Management discussed the ongoing anti-dumping process for 4-ADPA, an intermediate used in the manufacture of Pilflex 13. • Pilflex 13 Protection: Management clarified that the earlier anti-dumping duty recommendation for Pilflex 13 was not notified by the central government. • Potential 4-ADPA Duty Impact: Any duty on 4-ADPA could increase production costs for competing domestic manufacturers, but management said the effect on Pilflex 13 prices and NOCIL's margins remains uncertain. • Product Mix: Antioxidants account for approximately 60% of the business, limiting the overall contribution from anti-dumping protection applicable to sulfenamides. • Specialty Chemicals Mix: Management does not expect a significant near-term change in the proportion of specialized rubber chemicals within export volumes. • Global Competition: Management has not observed any major new Chinese capacity announcements beyond projects already disclosed or under commissioning. • Import Dumping Pressure: Continued competition from imported rubber chemicals remains a challenge for domestic pricing and margins. • Working Capital Improvement: Management indicated that working capital as a percentage of sales has improved to approximately 25%, compared with around 30–32% previously. • Inventory Management: Management said inventory generally turns over within approximately 40–60 days and does not currently anticipate a significant near-term inventory valuation impact. • H1 Revenue Performance: Management reported revenue of ₹830 Cr. The CFO indicated growth of 36% YoY, while the MD stated 26% YoY. • H1 Volume Performance: Overall sales volume increased approximately 3% YoY, with single-digit growth in both domestic and export markets. • Q2 Revenue Performance: Revenue increased 33% YoY and 6% QoQ to ₹427 Cr, primarily supported by higher average selling prices. • Q2 Volume Performance: Sales volumes declined 3% YoY and 7% QoQ due to temporary supply constraints and logistics disruptions. • Q2 EBITDA Performance: EBITDA increased 61% YoY but declined 20% QoQ to ₹36 Cr. • Q2 EBITDA Margin: Margin stood at approximately 8.4%, reflecting higher input costs, freight expenses and lower operating leverage. • Q2 Net Profit: PAT increased 98% YoY but declined 13% QoQ to ₹24 Cr. • Q2 Profit Before Tax: PBT increased 52% YoY but declined 24% QoQ to ₹28 Cr. • H1 EBITDA Performance: EBITDA increased 54% YoY to ₹81 Cr, with margin at approximately 9.8%. • H1 Net Profit: PAT increased 76% YoY to ₹52 Cr, while PBT increased 57% YoY to ₹65 Cr. • Key Challenges: Global geopolitical uncertainty, higher raw material and fuel costs, elevated freight expenses, import competition, pending customer approvals for TDQ capacity and the need for a strong H2 volume recovery remain important factors.

NOCIL LIMITED

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