Chemcon Speciality Chemicals Limited – Investor Presentation Summary

Key Operational Highlights

  • Overall business performance recorded healthy growth during Q2 and H1 FY27 despite moderation in key chemicals prices
  • Organic Chemicals segment delivered strong performance driven by steady demand and gradual improvement in realizations for HMDS, CMIC, 2-Bromo and Bromobenzene
  • Inorganic Chemicals segment was impacted by subdued demand, crude oil price volatility, geopolitical uncertainties and reduced oil drilling activity
  • Manufacturing facilities located at Manjusar near Vadodara, Gujarat with 10 operational units and 6 owned warehouses
  • Installed capacity of 11,400 MTPA for Organic Chemicals and 15,000 MTPA for Inorganic Bromides

Key drivers of operational performance: Steady demand across pharmaceutical, agrochemical and aromatics customers for organic chemicals; process re-engineering and optimized raw material consumption for cost efficiencies

Segment-wise Performance

  • Organic Chemicals (HMDS, CMIC, Bromobenzene, 2-Bromo): Strong performance with gradual improvement in realizations over past few months
  • Inorganic Chemicals (Bromides): Impacted by subdued demand, crude oil volatility, and reduced oil drilling activity leading to lower bromide volumes

Explanation of significant changes in segment performance: Organic segment growth driven by strong demand from pharmaceutical, agrochemical and aromatics customers; Inorganic segment weakness due to geopolitical uncertainties and reduced oil drilling activity

Financial Highlights

Revenue: Rs. 65.4 crore (Q2 FY27), Rs. 131.9 crore (H1 FY27)

EBITDA: Rs. 11.0 crore (Q2 FY27), Rs. 26.5 crore (H1 FY27)

PAT: Rs. 7.5 crore (Q2 FY27), Rs. 18.5 crore (H1 FY27)

EPS: Rs. 2.05 (Q2 FY27), Rs. 5.05 (H1 FY27)

Margins: EBITDA Margin 16.9% (Q2 FY27), 20.1% (H1 FY27); PAT Margin 11.5% (Q2 FY27), 14.0% (H1 FY27)

YoY/QoQ comparison: Revenue growth 22% YoY (Q2), 23% YoY (H1); EBITDA growth 61% YoY (Q2), 81% YoY (H1); PAT growth 31% YoY (Q2), 52% YoY (H1)

Drivers of financial performance: Higher revenue growth, operational efficiencies, improvement in realizations for organic chemicals

Key Risks: Moderation in key chemicals prices, weak offtake from Inorganic Chemicals customers, crude oil price volatility, geopolitical uncertainties

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Export data are inclusive of Deemed Exports (specific breakdown not provided)

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Other Equity of Rs. 441.2 crore (Sep-26)

Current Assets/Liabilities: Current Assets Rs. 318.4 crore, Current Liabilities Rs. 53.3 crore (Sep-26)

Working Capital/Leverage Metrics: Trade Receivables Rs. 42.1 crore, Inventories Rs. 65.4 crore, Trade Payables Rs. 16.6 crore (Sep-26)

Financial Health Insights: Strong cash position with Cash & Cash Equivalents Rs. 11.3 crore and Bank Balances Rs. 168.3 crore; Minimal borrowing with current borrowing at Rs. 27.3 crore

Capex & Cash Flow Health

Capital Expenditure: Capital Work in Progress of Rs. 21.0 crore (Sep-26)

Free Cash Flow: Not Specified

Operating Cash Flow: Net Cash from Operating Activities Rs. 43.1 crore (H1 FY27)

Net Debt Movement: Net decrease in cash and cash equivalents of Rs. 0.9 crore (H1 FY27)

Investment Rationale: Capacity expansion through new P-11 unit for organic chemicals manufacturing

Strategic & R&D Initiatives

Investments in Innovation: In-House R&D Laboratory; Plans to add manufacturing capacity at P-11 unit for organic chemicals

Expected impact on growth: Aim to capitalize on potential growth of Organic Chemicals in India and substitute imports

Strategic Rationale: Expanding into high-growth markets, diversifying product portfolio with diversified client base, achieving cost efficiencies through process re-engineering

Industry Trends & Business Environment

Macro/Industry Trends: Moderation in key chemicals prices compared to previous quarter; Crude oil price volatility; Geopolitical uncertainties; Reduced oil drilling activity

Impact on Company: Subdued demand affecting inorganic chemicals segment; Gradual improvement in realizations for organic chemicals over past few months

Management Commentary & Growth Outlook

Strategic Outlook: "Despite continued uncertainty in the operating environment, the Company remains optimistic about its growth prospects, supported by a healthy balance sheet, a diversified product portfolio, recovery in demand and the commissioning of the upcoming new unit"

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Uncertainty in operating environment; Company remains well-positioned to capitalize on emerging growth opportunities while maintaining disciplined approach