Financial Performance Highlights

Half Year Performance (April-September 2026 vs April-September 2025)

  • Consolidated Revenue: ₹182.25 crores, increased by 32% from ₹138 crores
  • Operating EBITDA: ₹22.55 crores (12% of sales), increased by 2% from ₹22.20 crores (16% of sales)
  • Profit Before Tax: ₹19.79 crores (11% of sales), increased by 2% from ₹19.39 crores (14% of sales)
  • Material Cost: Increased to 56% of sales from 46% of sales
  • Employee Benefit Expense: Decreased to 20% of sales from 21% of sales
  • Other Expenses: Decreased to 15% of sales from 18% of sales

Quarterly Performance (Q2 FY27)

  • Revenue: ₹95.8 crores, increased by 11% from Q1 FY27 and 31% from Q2 FY26
  • EBITDA: ₹8.4 crores
  • Profit Before Tax: ₹7 crores

Segment-wise Performance (H1 FY27 vs H1 FY26)

  • Water Technologies: Revenue increased by 28% due to good order book growth
  • Construction Chemicals: Revenue increased by 30% despite volume decline, driven by price increases and sales expansion in Gujarat and Maharashtra
  • Distribution: Revenue increased by 86%
  • Cleaning and Hygiene: Revenue increased by 59%

Volume Analysis (H1 FY27 vs H1 FY26)

  • Water Treatment Chemicals: 13,343 metric tons (vs 9,268 metric tons)
  • Construction Chemicals: 1,330 metric tons (vs 1,988 metric tons) - decline due to product mix change
  • Trading and Industrial Hygiene: 1,367 metric tons (vs 690 metric tons)

Business Segment Contribution

  • Water Technologies: 82% of revenues
  • Construction Chemicals: 8% of revenues
  • Distribution: 9% of revenues
  • Industrial Hygiene: 1% of revenues

Operational Highlights

Employee Strength

Total employees increased to 940 as of September 30, 2026 from 920 as of March 31, 2026:

  • Technical Services: 694 employees (vs 674)
  • Sales: 97 employees (vs 91)
  • Plant Operations: ~65 employees (stable)
  • Support Staff: 66 employees (vs 71)
  • R&D: 19 employees (vs 18)

New Business Developments

  • Strong traction in data center water treatment segment serving largest telecom company, NTT, Yota, and Control-S
  • Automated solutions with online monitoring and feed control systems for data centers
  • Product mix change in construction chemicals with higher contribution from sealants business
  • Repurposed production line in Gujarat plant for increased sealants capacity

Management Commentary

Margin Pressure Factors

  • Material costs increased significantly due to geopolitical volatility (Iran war impact)
  • Supply chain disruptions affecting imported components from China
  • Currency fluctuations impacting import costs
  • Freight rates remaining high
  • Delay in customer acceptance of price increases
  • 25-30% of water business with PSUs on fixed-price contracts limiting price pass-through

Growth Drivers

  • Volume growth across all industrial segments (refining, petchem, chemical manufacturing, agrochemicals, fertilizer, power, steel, cement)
  • Expansion into new age industries (data centers, solar panels, copper plants) contributing 7-8% of water revenue, expected to reach 12-15%
  • Water conservation and recovery initiatives driving demand for advanced treatment programs
  • Strong order book continuing into next financial year

Strategic Outlook

  • Aspirational target of ₹1000 crore revenue in three years through organic growth and inorganic opportunities
  • Capacity expansion not a constraint due to modular plant design
  • Focus on synergistic acquisitions in areas of credible presence
  • Potential capital return to shareholders if no immediate cash need

Participants

Management:

  • Mr. Nirmal V. Shah - Chairman and Managing Director
  • Mrs. Prachi Mahadik - Chief Financial Officer
  • Mr. Kiran Mukadam - Company Secretary & Compliance Officer

Analysts/Investors:

  • Zaki Nasser
  • Ritesh Poladia
  • Siddharth Neelkanth
  • Jinaal Sheth
  • Madhur Rathi
  • Lala Ram

Forward-looking Statements Disclaimer

Certain statements during the meet were forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to publicly update these statements.