Black Rose Industries FY26 Q4 EBITDA Surges 90%

Q4 FY26 Performance: Revenue grew by 38% year-on-year. EBITDA surged by 90% year-on-year.
Full Year FY26 Standalone: Revenue saw a minor dip (specific figure not quantified).
Profitability: EBITDA margin improved from 9.7% in the previous year to 11%.
Earnings Per Share (EPS): Showed improvement (specific figure not quantified).
Dividend: The board recommended a dividend of 125% for FY26.

The company remains debt-free in its operations.
Inventories reduced during the year due to increased market share and new customer additions.

Achieved significant volume growth driven by strong domestic demand and new customer additions.
Overall revenue declined due to a sustained drop in chemical pricing throughout the year until March 2026.
The stock and sales model proved effective, ensuring uninterrupted supply despite geopolitical disruptions in the Middle East.

Acrylamide Liquid: Significant volume growth achieved. Current total capacity is 32,000 MTPA, with 20,000 MTPA earmarked for merchant sales.
N-methylol acrylamide (NMA): Significant volume growth achieved. Capacity is 2,000 MTPA. The company is the market leader and only supplier to a key customer in India.
Acrylamide Solid: Volumes remained stable despite competition from Chinese imports. Capacity is 3,600 MTPA.
Strategic Shift: Exited the ceramic binder business in Morbi to focus on strengthening upstream acrylamide and expanding into higher-value applications.

Volume increased, which helped offset the correction in chemical prices throughout the year.
Expanded customer base and serviced new geographies.
Exports: Merchant exports saw a shortfall due to unpredictable US tariff policies, which led to weaker offtake from the US oil and gas sector.

Acrylonitrile prices gradually declined until February 2026.
Prices shot up drastically in March 2026 due to the onset of war in the Middle East.
The company maintained good realizations through proactive raw material procurement and sales efforts.

Near-term demand in Q1 FY27 is likely to remain subdued due to global uncertainties.
Higher pricing overall is expected to drive revenue upwards in Q1.
A strong order pipeline for merchant exports is expected to translate into healthy performance.

Acrylamide Liquid & Solid: Export demand has started to pick up in the second half of Q1 FY27. Focus remains on exports to key accounts, supported by REACH registration and pre-registration of Turkish REACH (KKDIK). Profitability should be supported by ongoing operational efficiencies.
NMA: Volumes are expected to remain stable. Focus remains on new customer addition domestically and overseas.

Polyacrylamide (PAM) Solid Project: Has advanced to the piloting stage. Commercialization activities are expected to begin during FY27.
New Downstream Products: The R&D team is developing new downstream acrylamide products to add to the manufacturing basket in future quarters.
Specialty Amines Project: Being undertaken along with Koei Chemicals Company. Progressing as planned, with a decision on the project expected during FY27.
R&D: A new laboratory in Navi Mumbai is concentrating on new innovations and opportunities.

Sustainability of Q4 Margins/EBITDA: Management stated it is difficult to predict exact margins long-term but expects them to remain healthy as chemical prices have normalized. The Q4 performance was a mix of operational gains and inventory management, not a one-time event.
Plant Closure Notice: The permanent revocation of a closure notice means operations can continue without interruption. This issue is now resolved.
Capacity Increase: The revocation is not related to capacity expansion. The company aims to achieve maximum utilization of existing manufactured product capacities.
FY27 EBITDA Guidance: Management declined to provide a specific number (e.g., ₹50 crore), citing too many variable factors, but emphasized the endeavor is to increase business in both distribution and manufacturing.
Impact of New Products: New products added in both distribution and manufacturing are expected to contribute to top-line growth, contingent on market penetration and general price levels.