Camlin Fine Sciences Ltd

It Is with pride and privilege that we present the Annual Report for FY2024-25.

The global chemical sector has endured yet another year of volatility and uncertainty. Prolonged macroeconomic softness, inflationary pressures, and oversupply, especially from Chinese producers continued to suppress margins across key segments. Concurrently, supply chain disruptions driven by geopolitical instability further lead to complications in our global operations. Nevertheless, these headwinds also presented opportunities for resilient, strategically oriented businesses like ours to strengthen market position and build our readiness for the future.

To address these challenges head-on, we remained sharply focussed on levers within our control, optimizing our product portfolio for higher-value applications, improving operational efficiency, and strengthening fiscal prudence. Through disciplined working capital management, tightening inventory cycles, optimizing receivables, and controlling costs, we significantly improved our cash flow position. In parallel, the successful completion of our rights issue not only reflected strong investor confidence but also allowed us to strategically deleverage. These actions yielded tangible outcomes.

We delivered consolidated revenue growth of 15% YoY, reaching ? 1,66,653 lakh, and expanded our adjusted EBITDA by 13% to ? 20,811 lakh, sustaining a healthy EBITDA margin of 12.5% from our continuing operations.

Profitability remained subdued due to prudential provisioning of our discontinued operations of Cash Generating Unit in CFS Europe and the Vanillin manufacturing facility of CFS Wanglong China. The negative carry on the net worth was addressed by the aforesaid Rights Issue, which helped in avoiding deterioration in the tangible net worth.

Ashlsh Dandekar

Chairman & Managing Director

In our Specialty Ingredients vertical, we are deepening our leadership position by remaining the preferred partner for antioxidants. More importantly, we are accelerating our transition toward high-margin blends and additives—products tailored to meet the nuanced needs of sectors such as food, pet food, biodiesel, livestock, and aquaculture. I am delighted to share that the Specialty Ingredients segment once again emerged as our largest revenue contributor, generating 11,26,047 lakh.

The strategic pivot towards Blends has begun to pay off.

Blends revenue surged to ? 87,840 lakh, solidifying its place as the dominant force within this vertical. In contrast, while revenues from commodity Straights moderated to ? 38,207 lakh, the shift was intentional and aligned with our margin-focused strategy.

Another highlight of the year was the successful integration of Vitafor. In its first year, Vitafor contributed ? 8,488 lakh in revenue, validating our strategic foresight. More than just a revenue stream, Vitafor has opened direct access to premium markets in Europe and Africa in the pet food and animal nutrition segments.

It also complements our existing operations in Mexico, creating valuable synergies that we are excited to nurture further.

As part of our ongoing growth strategy, we are expanding the diphenol chain within our Performance Chemicals portfolio.

This expansion includes the launch of innovative products such as CME, Chloranil, and Naphthol, each designed to enhance our offering and cater to evolving market needs. To support this growth, we continue to optimize our manufacturing capacity through targeted debottlenecking initiatives. These improvements not only increase efficiency but also align with the 'Make in India' initiative, as we emphasize indigenous production of high-value, performance-driven solutions. These strategic efforts have yielded tangible results. Our Performance Chemicals segment, which recorded revenues of ? 19,560 lakh, remains a strong contributor to our long-term profitability, reinforcing the value of our focussed innovation and operational excellence.

Nlrmal Momaya

Managing Director

In Aroma Ingredients, we continue to drive innovation-led growth. Our focus remains on developing a differentiated vanillin portfolio, including ethyl-vanillin and clove-derived natural vanillin, offering sustainable, customized solutions for evolving global needs. This year marked a key operational milestone with our Dahej vanillin facility achieving steady-state operations, contributing ? 17,581 lakh in revenue. With a clear roadmap and strong market signals, we are well-positioned to achieve optimal capacity utilization. Recent anti-dumping measures in key Western markets have shifted global demand toward reliable, high-quality suppliers further reinforcing CFS' position as a trusted partner.

Our global footprint continues to evolve in step with regional opportunities, and we pleased to share encouraging developments across our key markets. India remains the cornerstone of our operations, with strong and consistent demand across the food, pharmaceutical, and animal nutrition sectors. This enduring strength reflects our deep market integration and the trust we've built across value chains. In North America, we saw healthy traction, particularly in antioxidant blends fuelled by successful onboarding of new customers. This momentum underscores the relevance of our solutions in a mature yet competitive landscape.

Our performance in Mexico has further solidified our leadership in the region. Continued growth here reaffirms the effectiveness of our local engagement model and supply chain responsiveness. Brazil showed signs of recovery, supported by an uptick in livestock-related demand. While modest, this progress is encouraging and points to improving fundamentals in the region. In Europe, although the current environment remains subdued, it is a region of strategic focus.

Our growth strategy for FY26 is backed by strong organic initiatives and will be further accelerated by the anticipated Vinpai acquisition, which will expand our presence in clean-label solutions

The path ahead is both clear and promising.

As we step into FY 2025-26, our focus sharpens on strategically building on our core strengths while staying responsive to the evolving demands of the industries we serve.

Our unwavering focus on innovation, customization, and operational excellence continues to shape a resilient, future-ready business. We aim to scale vanillin production, accelerate growth in value-added blends, and expand our diphenol derivatives portfolio anchored in responsible capital deployment and guided by our ESG commitments. These include advancing renewable energy use, driving process efficiency, and reducing our supply chain carbon footprint. Our ability to deliver on this ambition is powered by the dedication of our teams, the trust of our customers, and the continued support of our partners and stakeholders.

With your belief in our purpose, we remain committed to delivering differentiated solutions that serve people, planet and progress.

Thank you for your continued confidence in Camlin Fine Sciences (CFS).