Regulatory Filing Details

Regulation Reference: Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Financial Performance Highlights - Q1 FY27 (Consolidated)

Bhagiradha Chemicals reported its highest-ever quarterly performance in Q1 FY27 with significant year-on-year improvements across all key financial metrics.

Revenue & Profitability:

  • Revenue from Operations: ₹195.0 Cr (Q1 FY26: ₹123.8 Cr), representing 58% YoY growth
  • Gross Profit: ₹75.2 Cr (Q1 FY26: ₹41.5 Cr), representing 81% YoY growth
  • Gross Profit Margin: 38.6% (Q1 FY26: 33.5%)
  • EBITDA: ₹30.5 Cr (Q1 FY26: ₹9.0 Cr), representing 240% YoY growth
  • EBITDA Margin: 15.7% (Q1 FY26: 7.3%)
  • Profit After Tax: ₹13.3 Cr (Q1 FY26: ₹4.0 Cr), representing 235% YoY growth
  • PAT Margin: 6.8% (Q1 FY26: 3.2%)

Sequential Performance (QoQ):

  • Revenue increased 23% from Q4 FY26 (₹158.1 Cr)
  • PAT increased 227% from Q4 FY26 (₹4.1 Cr)

Cost Structure:

  • Cost of Raw Materials Consumed: ₹119.8 Cr
  • Employee Benefit Expenses: ₹14.7 Cr
  • Other Expenses: ₹30.0 Cr
  • Depreciation & Amortization: ₹8.3 Cr
  • Interest Expense: ₹6.4 Cr
  • Tax Expense: ₹4.2 Cr

Management Commentary

Mr. A. Arvind Kumar, Executive Director & CEO commented on the performance:

Q1 FY27 marked a strong start to the year with robust revenue growth driven by higher volumes, improved realizations, and a favorable product mix. The company introduced four new molecules, largely in the mid- to high-value segments, which contributed meaningfully to growth.

Margins improved on both year-on-year and sequential basis, supported by better realizations and operating leverage. Raw-material prices remained broadly stable, although select crude-linked inputs witnessed increases due to geopolitical developments in West Asia.

The Bheema Fine Chemicals facility continued to ramp up well during the quarter, with capacity utilization nearly doubling compared with Q4 FY26. The facility remains focused on mid- and high-value molecules with increasing emphasis on expanding contribution from high-value products.

At the existing Bhagiradha facility, the company is gradually reducing the share of low-margin products and redeploying capacity towards better margin products. This strategic shift across both facilities is expected to improve revenue quality and support sustainable profitability growth.

Operationally, the company continues to upgrade processes, adopt new technologies, and debottleneck capacities to improve overall efficiency. These initiatives are expected to enhance throughput, improve utilization levels, and contribute further to margin expansion.

Operational Highlights

Manufacturing Facilities:

Andhra Pradesh - Ongole Facility (Existing Plant):

  • 3 production blocks with 4 process lines
  • Capacity: 3,250 MT per annum
  • Capacity Utilization: ~86%
  • 7-10 products manufactured annually
  • 4 MW Solar Power Plant reduces power costs
  • 8 synthesis labs with over 100 chemists

Karnataka - Kadechur Facility (Bheema Fine Chemicals - New Plant):

  • 2 production blocks with 5 proposed process lines
  • Capacity: 9,002 MT per annum (Phase 1 at 50%)
  • Capacity Utilization (Phase 1): ~60% for Q1 FY27
  • 10-14 products manufactured annually
  • Zero Liquid Discharge (ZLD) effluent treatment plant
  • State-of-Art Distributed Control Systems facility

R&D Capabilities:

  • Well-established R&D centre approved by DSIR & Ministry of Technology and Science
  • 8 Synthesis labs with 100+ Chemists
  • Pursuing joint R&D initiatives with multinational partners from Japan, US, and Israel
  • Focus areas: New process development, off-patent products, backward integration
  • Capable of 25+ chemistries and 120+ reactions proven in R&D

ESG Initiatives:

  • Zero Liquid Discharge (ZLD) ETP which recycles ~30% of daily water requirement
  • Electro Oxidation Plant for effluent treatment
  • Multi-stage scrubbers for gaseous emission control
  • Online Continuous Monitoring Systems installed as per CPCB and APPCB guidelines
  • Comprehensive fire safety measures including nitrogen breathing systems

Company Overview

Business Presence:

  • 3 decades of operations with successful launch of 30+ Active Ingredients, Intermediates & Formulations
  • Presence in 20+ countries with >80% of exports in regulated markets
  • Serving farming communities worldwide

Leadership Team:

  • S. Chandra Sekhar: Promoter & Managing Director (Chemical Engineer, MS from University of Illinois)
  • A. Arvind Kumar: Executive Director & CEO (M.Tech Chemical Engineering from IIT Madras, 15 years experience)
  • Dr. Venkatesan Subbusamy: VP - Regulatory Affairs & Registration (PhD in Entomology)
  • Ranjit Kumar Kilaru: Chief Financial Officer (from March 1, 2026, FCA with 23 years experience)
  • Sharanya M.: Company Secretary & Compliance Officer (Qualified CS, Law Graduate)
  • Venkat Sai: Group President (35+ years in agrochemical industry)

Capital Structure History

Warrants Issued (November 2023):

  • 25,61,425 equity shares of ₹10 each
  • Price: ₹1,332 per share warrant (including premium of ₹1,322)
  • Total: ₹340 crores
  • Upfront Payment: 25% (₹85.30 Crores)

Subdivision of Shares (May 2024):

  • Existing equity shares of face value ₹10 subdivided into 10 equity shares of face value ₹1 each

Conversion of Loans to Equity (May 13, 2025):

  • Outstanding amount of ₹367.52 Cr lent to subsidiary converted to equity

Post-conversion Shareholding (May 2024):

  • Promoter & Promoter Group: 19.74% (assuming full conversion)
  • Public: 80.26% (assuming full conversion)
  • Total shares: 12,96,69,080 (assuming full conversion)

Cumulative promoters' participation: ₹51 crores