Privi Specialty Chemicals announced strong financial results for Q3 and 9M FY’26, highlighting resilient performance amid global uncertainties. The company achieved a Q3 revenue of INR 611.15 crores (up 25% YoY) and an EBITDA of INR 158 crores (up 37% YoY), maintaining a margin of 25.83%. Management confirmed the 3-phase expansion roadmap and reiterated their vision to reach INR 5,000 crores in revenue with a minimum INR 1,000 crores EBITDA within 3 to 4 years.
Q3 and 9M FY’26 Financial Highlights
Privi Specialty Chemicals reported commendable results for the third quarter ending December 31, 2025, demonstrating the robustness of its business model. For Q3 FY’26, Total Income stood at INR 611.15 crores, marking a 25% growth year-on-year. EBITDA for the quarter grew by 37% YoY to INR 158 crores, translating to an EBITDA margin of 25.83%.
The performance for the 9-month period was equally strong, with revenue reaching INR 1,857 crores (a 24% growth YoY) and overall EBITDA at INR 481 crores (a 47% growth YoY). Profit After Tax (PAT) for the 9-month period, after necessary adjustments, reached approximately INR 232 crores, showing a significant growth of about 84% YoY.
Capacity Expansion and Strategic Growth
Management confirmed that the company is executing a clearly defined 3-phase expansion roadmap over the next 2-3 years, which is expected to enhance overall capacity by nearly 55%.
- Phase 1 Capex: Progression is on schedule, expected to commercialize by the end of March or latest by April ’26. This increases existing product capacity from 48,000 metric tons to 54,000 metric tons.
- Phase 2 & 3 Capex: The multi-speciality aroma chemicals project is progressing. The amalgamation scheme involving Privi Fine Sciences Private Limited and Privi Biotechnologies Limited is currently under process.
The company expects 7% volume growth in the coming financial year, with potential for 11% to 15% growth as new projects stabilize.
Joint Venture with Givaudan (Prigiv) Update
The joint venture with Givaudan, Prigiv, achieved positive EBITDA in Q3. Management successfully convinced Givaudan to reduce Prigiv’s debt burden via a non-interest-bearing trade advance. Furthermore, an investment of INR 50 crores (funded by 51% equity from Privi and 49% from Givaudan) is planned to augment revenues by creating capacities for additional products.
Biotechnology and Future Pipeline
Growth plans beyond the 5k:1k targets involve working on proprietary technologies to convert biomass (biowaste) into value-added products at the kilogram laboratory level. The development of Cyclopentanone from a renewable resource (bio route) was highlighted as a key innovative step.
Margin Outlook and Capex Funding
Management expressed confidence in sustaining EBITDA margins above 20%, potentially reaching 23% to 25% through operational efficiencies, improved product mix, and cost control measures like utility conservation and backward integration (such as plans to manufacture Furfural in-house).
Regarding the INR 1,200 crores capex plan, debt-to-EBITDA is currently around 1.6x, well within the desired comfort level of not exceeding 2.5x. The company indicated that this capex will primarily be funded through internal accruals and bank borrowings, not requiring immediate equity dilution.
Trade Advantages and Sustainability
The new geopolitical landscape, particularly favorable trade arrangements between India, the US, and Europe, positions Privi favorably as global customers seek diversified supply chains. The company’s EcoVadis platinum rating is expected to provide advantages under the upcoming CBAM norms in Europe due to its negligible carbon footprint compared to competitors who face duties of 6% to 9%.
Closing Remarks
Management concluded by reaffirming their commitment to the INR 5,000 crores revenue roadmap, anticipating that FY ’29 will be the year of material scale-up into the next revenue growth level, following a transition in FY ’28.
Source: BSE
