Prigiv targets Rs 225 crore revenue in FY28 after Q2 PBT

Prigiv joint venture is targeting about Rs 225 crore of revenue in FY28 after reporting about Rs 28 crore of sales and profit before tax of close to Rs 2 crore in Q2, management said. Management linked the FY27-28 target to two expansion phases, one of which is already under way.

What revenue is Prigiv targeting in FY28?

Prigiv is targeting around Rs 225 crore of revenue in FY27-28, which management clarified when an analyst asked whether the guidance applied to FY27. Sanjeev Patil initially agreed with the question, then specified “FY27-'28”, making the target applicable to the financial year ending in 2028. The call did not provide a separate revenue target for FY27.

Management said the Rs 225 crore objective was based on two phases of expansion at Prigiv, with one phase already under way. The transcript does not disclose the capital spending, capacity addition, products, customer contracts or commissioning date for that work. The target is therefore management guidance linked to an expansion plan, rather than a calculation based solely on current sales.

Prigiv's Rs 225 crore target is substantially higher than its reported Rs 47 crore of sales in the first six months. Q2 alone accounted for about Rs 28 crore of that first-half total, while the remaining reported period represented about Rs 19 crore by subtraction. Management did not provide a year-on-year sales comparison or a quarterly revenue target for Prigiv.

Was Prigiv profitable in Q2?

Prigiv reported profit before tax, or PBT, of close to Rs 2 crore in Q2 on sales of about Rs 28 crore. Narayan S. Iyer gave the figures in response to a question about the joint venture's revenue and earnings before interest, taxes, depreciation and amortisation, or EBITDA. Management did not disclose an EBITDA figure for Prigiv.

For the first six months, Prigiv recorded about Rs 47 crore of sales and a negligible loss of Rs 2,000, according to Iyer. The first-half result contrasts with the positive Q2 PBT of close to Rs 2 crore, indicating that the other quarter offset the Q2 profit. The call did not disclose first-quarter PBT or identify the operational reason for the change.

The disclosed figures establish that Prigiv generated positive PBT in Q2, but they do not establish full-year profitability. Its first-half PBT was still marginally negative at Rs 2,000, and management did not state a full-year PBT, net-profit or margin target. The FY27-28 revenue goal of around Rs 225 crore is tied to planned expansion rather than to a disclosed profit forecast.

What expansion supports Prigiv's FY28 target?

Prigiv's Rs 225 crore target is supported by two expansion phases, including one already under way, management said. Patil did not identify the products, capacity, plant location or completion schedule of the ongoing phase. The direct disclosure was that the revenue expectation rested on the two phases.

Management described a pilot-led commercial approach for new capacity elsewhere in the business. During the one-year project-building period, Privi Speciality Chemicals Limited plans to manufacture products on a pilot basis and sell them to customers, so that quality and other requirements are addressed before commercial production begins. Patil said the customer response was positive, but did not disclose product names, customers or binding offtake volumes.

The call also outlined a broader Phase 2 programme outside the specific Prigiv discussion. That programme covers maltol, ethyl maltol, furfural and cyclopentanol, is expected to be completed between June and September 2027, and is expected to start contributing revenue from October 2027. Management said that broader Phase 2 could generate about Rs 1,000 crore at full capacity of 12,000 metric tonnes, but did not attribute that figure to Prigiv.

This separation is important because management discussed several expansion programmes during the call. Privi said its three broader phases had potential revenue of about Rs 1,700 crore to Rs 1,800 crore, while Prigiv's separately stated target was around Rs 225 crore in FY27-28. The two figures should not be added together without further disclosure on ownership and segment allocation.

What could change Prigiv's revenue outlook beyond FY28?

A third Prigiv expansion phase could take revenue beyond Rs 225 crore, but management has not included it in current guidance. Patil said Prigiv was conducting pilot studies and feasibility work, including analysis of the phase's economics and financials. He said further guidance could be provided after about three to six months once that work was complete.

The third phase remains an evaluation rather than a committed revenue contributor. Management gave no capital-cost estimate, capacity figure, product description or revenue range for it. The stated Rs 225 crore objective therefore rests on the two disclosed expansion phases, not on the potential third phase.

A financing process at Prigiv is also unresolved. Iyer said a proposal to convert debt into an advance was still in process, adding that discussions with large multinational companies take time. Management did not disclose the debt amount, counterparties, conversion terms or expected completion date.

Approval timing was raised elsewhere on the call in relation to a separate biotechnology operation. Management said regulatory approvals had delayed its capacity expansion, although four of five products were already being supplied to top multinational companies and capacity utilisation was about 85%. It expected the permissions in the next few months, but did not state that the same approvals issue applied to Prigiv.

Conclusion

Prigiv has reported a Q2 PBT profit of close to Rs 2 crore on about Rs 28 crore of sales, following a first-half result of about Rs 47 crore of sales and a Rs 2,000 loss. Management's Rs 225 crore FY27-28 revenue target represents a much larger planned scale and depends on two expansion phases rather than on the reported first-half run rate alone.

The next disclosed item to watch is completion of the third-phase pilot, feasibility, economics and financial assessment, for which management indicated a three-to-six-month timeframe before offering further guidance. Progress on the debt-to-advance conversion and any future disclosure on the ongoing expansion's capacity, commissioning schedule or customer offtake will also determine how clearly Prigiv's route to the Rs 225 crore target can be assessed.