Gem Aromatics Limited stock analysis

Our near-term priorities remain focused on improving capacity utilization, strengthening customer relationships, and enhancing operational efficiencies across the business. We will continue to build our core business while increasing our presence across non-mint and higher value specialty products. With the manufacturing and product capabilities established over the past few years, our focus now is on disciplined exe

As the business progresses, what do you see as the key driver for a margin recovery? Yash Parekh: So, the production ramp-up is a key driver and as we go more and more into value-added products across those value chains, plus we have a multipurpose plant that has been established as well as a strong and robust pipeline of products developed, which are specialty in nature and focused upon aroma chemicals largely that

With the manufacturing and product capabilities established over the past few years, our focus now is on disciplined execution and progressive scale-up. As utilization and the newer businesses gain traction, we expect operating leverage to increasingly support margins and profitability over the medium term. We remain committed to sustainable growth and long-term value Gem Aromatics Limited August 14, 2026 Page 6 of 1

You know, currently we're facing a timing mismatch, you know, where the cost of the new facility, the depreciation, interest, manpower cost, they are all, you know, kicked in to the current financials due to the standby capacity which has already kicked in. But however, the revenue from the higher margin product mix which is yet to come from our Krystal unit has not come in yet in our current financials. So, as you s

Coming to Krystal Ingredients Private Limited, our wholly owned subsidiary, the Dahej facility continues the progress through its commercialization phase while the customer engagement and product qualification activities advancing across the newer product categories. Gem Aromatics Limited August 14, 2026 Page 5 of 16 As I just walk you through them, starting with Safranal, commercial production has commenced and the

For the Citral and the Safranal based derivatives, at this stage, the production and the revenue contribution will start in a meaningful way by Q2 FY ‘27 and far more meaningful orders will come through by Q3 FY ‘27. Again, the product has been successfully approved by multiple customers and we are hoping of a strong traction in the Citral vertical as well. As far as the phenol derivatives segment is concerned, the t