Company Overview

The Andhra Petrochemicals Limited (CIN: L23209AP1984PLC004635) is a manufacturer of Oxo-Alcohols including 2 Ethyl Hexanol, Normal Butanol and Iso Butanol. The company is an associate of The Andhra Sugars Ltd and has its registered office at Venkatarayapuram, Tanuku - 534215, West Godavari District, Andhra Pradesh.

Financial Performance FY 2025-26

Key Financial Figures:

  • Revenue from operations: ₹45,580.28 lakhs (Previous year: ₹50,188.75 lakhs)
  • Other income: ₹2,532.96 lakhs (Previous year: ₹2,775.72 lakhs)
  • Total income: ₹48,113.24 lakhs (Previous year: ₹52,964.47 lakhs)
  • Profit/(Loss) before interest & depreciation: ₹509.04 lakhs
  • Interest expense: ₹894.19 lakhs
  • Depreciation and amortization: ₹1,472.99 lakhs
  • Profit/(Loss) after interest and depreciation before extraordinary items: (₹1,858.14) lakhs
  • Exceptional items (FPPCA charges): ₹308.27 lakhs
  • Profit/(Loss) before tax: (₹2,166.41) lakhs
  • Deferred tax: (₹603.66) lakhs
  • Profit/(Loss) after tax: (₹1,562.75) lakhs
  • Other comprehensive income: ₹24.16 lakhs
  • Total comprehensive income: (₹1,538.59) lakhs
  • Balance brought forward: ₹40,640.91 lakhs
  • Profit carried forward: ₹39,102.39 lakhs

Operational Performance:

  • Production: 47,844 MT of Oxo-Alcohols (Previous year: 51,489 MT)
  • Sales: 50,354 MT (Previous year: 49,032 MT)
  • Net loss: ₹15.63 crores (Previous year: ₹18.13 crores loss)

Capital Structure:

  • Authorized capital: ₹125.00 crores
  • Paid-up capital: ₹84.97 crores
  • Total reserves: ₹420.38 crores (Previous year: ₹435.77 crores)
  • No amount transferred to General Reserve

Dividend: No dividend recommended due to losses incurred during the year.

Contribution to Exchequer: ₹3.46 crores paid (Previous year: ₹7.95 crores)

42nd Annual General Meeting

Date and Time: Wednesday, 23rd September, 2026 at 3:00 p.m.

Venue: ASL Meeting Hall, Upstairs of Canteen Building of The Andhra Sugars Ltd., Venkatarayapuram, Tanuku

Book Closure: 21st September 2026 to 23rd September 2026 (both days inclusive)

Ordinary Business:

1. Adoption of audited financial statements for FY ended 31st March 2026

2. Reappointment of Sri M S R V K Ranga Rao (DIN 00031720) who retires by rotation

3. Reappointment of Sri Ravi Pendyala (DIN 03375555) who retires by rotation

4. Fixation of remuneration of Statutory Auditors M/s C V Ramana Rao & Co. for FY 2026-27

Special Business:

5. Ratification of remuneration of ₹2,00,000 plus taxes and expenses to M/s Narasimha Murthy & Co., Cost Accountants for FY 2026-27

Key Material Developments

Land Lease Issue with Visakhapatnam Port Trust:

  • Company's 75-acre land lease expired on 26th June 2019
  • VPT cancelled tender despite company being sole bidder
  • Hon'ble High Court of Andhra Pradesh allowed company's writ petition on 25th February 2022, directing VPT to execute lease deed
  • VPT filed appeal (WA No. 688 of 2022) on 7th September 2022
  • Hon'ble High Court delivered judgment on 3rd November 2025, based on which company requested VPA to float tender
  • Pending execution, company provisionally considering bid amount for accounting under Ind AS 116

FPPCA Charges Dispute:

  • APERC levied Fuel & Power Purchase Cost Adjustment charges for FY 2022-23 (₹308.27 lakhs) and FY 2023-24 (₹332.18 lakhs)
  • Company filed petitions before Appellate Tribunal for Electricity (APTEL), New Delhi
  • Provision made for ₹308.27 lakhs for FY 2022-23 (exceptional item)

Credit Rating:

  • ICRA revised company's long-term unallocated limits of ₹57.18 crores to ICRA BBB+ (Negative) from ICRA A- Negative
  • Long term fund-based working capital facilities ₹35.00 crores rated ICRA BBB+(Negative)
  • Short term non-fund based working capital facilities ₹2.00 crores reaffirmed at ICRA A2+

Production Halt: Plant operations temporarily suspended from 17th March 2026 due to stoppage of Propylene supply from HPCL. Operations to resume after supply restoration.

Corporate Governance

Board Composition: 10 Directors as on 31st March 2026

Board Meetings: 4 meetings held during FY 2025-26

Key Managerial Personnel:

  • Sri K Narasappa, President
  • Sri G Adinarayana, Chief Financial Officer & Company Secretary

Auditors:

  • Statutory Auditors: M/s C.V. Ramana Rao & Co., Chartered Accountants
  • Cost Auditors: M/s Narasimha Murthy & Co., Cost Accountants
  • Secretarial Auditors: M/s Nekkanti S.R.V.V.S. Narayana & Co., Company Secretaries

Shareholding Pattern:

  • Promoters, Directors, Relatives and Associate Companies: 45.22%
  • Indian Public: 49.67%
  • Dematerialized shares: 96.27% of paid-up capital

CSR Expenditure: ₹55.39 lakhs spent on healthcare activities through Sree Mullapudi Venkatarayudu Memorial Medical Trust

Regulatory and Compliance Matters

SEBI Compliance: Notice from BSE levying fine of ₹5,000 plus GST for 1-day delay in submission of Related Party Transactions for half-year ended 31st March 2023. Company applied for waiver.

Unclaimed Dividends:

  • Dividend for 2018-19 to be transferred to IEPF on 22nd August 2026
  • Shareholders requested to claim dividends before transfer dates

Physical Share Compliance: Shareholders holding physical shares must mandatorily furnish PAN, nomination, contact details, bank account details and specimen signature in prescribed forms.

Risk Factors

  • Dependence on single source (HPCL) for major raw material Propylene
  • International supply-demand fluctuations and product price volatility
  • Currency exchange rate fluctuations
  • Geopolitical tensions affecting business environment
  • Cheaper imports and lower oxo alcohols prices in Asia due to additional capacity in China

Future Outlook

Company performance expected to be reasonably good based on forecast of better GDP growth for India, though disrupted business environment due to geopolitical tensions may impact performance. Company signed Natural Gas term sheet agreement with GAIL in 2019, but pipeline project cancelled and new tenders called.