- Event Type: Q1 FY27 Earnings Conference Call.
- Date and Time: The call was held on August 7, 2026. The transcript was filed with the exchanges on August 14, 2026, at 5:52 PM IST.
- Purpose: To discuss the company's financial results and business performance for the quarter ended June 30, 2026 (Q1 FY27).
- Management Participants: Mr. S. Ganeshkumar (Managing Director), Mr. A.R. Balaji (Chief Financial Officer), Dr. Krishna Kumar Rangachari (Head, Custom Manufactured Chemicals Division), and Mr. N. Muralidharan (Executive Director, Finance).
- Availability of Materials: The financial results and an investor presentation were uploaded on the stock exchanges and the company's website prior to the call. The audio recordings of the call were also uploaded to the exchanges.
- UPSI Statement: The conference call contained forward-looking statements based on the company's beliefs and opinions as of the date of the call, noting they are not guarantees of future performance and involve risks and uncertainties.
Financial & Business Highlights:
- The discussion centered on Q1 FY27 results.
- Consolidated Performance: Revenue was INR 1,125 crores. EBITDA was a loss of INR 115 crores. Net loss was INR 176 crores.
- Segment-wise Revenue: Specialty Chemicals contributed INR 427 crores (38% of total); Value-added Chemicals contributed INR 129 crores (11%); Suspension PVC contributed INR 569 crores (51%).
- Standalone Performance: Revenue from operations was INR 592 crores. EBITDA was INR 7 crores.
- Key Business Updates:
- Paste PVC: Demand was volatile but improved in June. A 7,000-ton debottlenecking project is on track for October 2026 commissioning. The company obtained a favorable order from the Madras High Court directing provisional assessment of imports and execution of bonds by importers concerning anti-dumping duty (ADD). Basic customs duty was waived from April 1 to July 15, 2026, and reinstated from July 16, 2026.
- Custom Manufactured Chemicals (CMCD): Performance improved with a healthy order book. The molecule pipeline expanded to nearly 50 molecules, with 14 commercialized. MPB 3 Phase 3 and pilot Phase 3 capacities were commissioned.
- Refrigerant Gas (R32): Commercial production commenced from a swing plant in May 2026. A new plant is under commissioning, with full capacity expected by end of FY27.
- Value-Added Chemicals: Caustic soda and chloromethane markets remained challenging. Hydrogen peroxide volumes improved sequentially.
- Suspension PVC: Impacted by declining prices and high-cost VCM inventory. Customs duty was exempted from April 2 to June 30, 2026, and later reinstated. A Minimum Import Price (MIP) was imposed on low-price imports.
- Fire Incident: A fire occurred at the Karaikal PVC plant on July 17, 2026, leading to a manual shutdown. There were no injuries or spillages, and the fire was extinguished within 15 minutes. Operations are being restored.
- Strategic Review Committee: A committee of independent directors is evaluating strategic priorities and has engaged advisers; no definitive outcome to report.
- Forward-Looking Statements: Management expressed confidence in a turnaround, citing improving PVC spreads ($160 needed for EBITDA break-even, $190 for PBT break-even), the strong momentum in CMCD, and the upcoming R32 capacity. High-cost VCM inventory is expected to be fully consumed by August 2026, with normalized market conditions anticipated from Q3 FY27.
Additional Notes Section
- The document is a transcript of the earnings conference call, edited for factual errors, with the audio recording being the prevailing document in case of discrepancy.
- The transcript was included as an attachment to the regulatory filing.
- Detailed financial data from the quarterly results was discussed during the call.
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