Financial Performance Highlights
Consolidated Q2 FY27 Performance:
- Revenue from Operations: ₹1,323 crore (28% YoY increase from ₹1,033 crore in Q2 FY26)
- EBITDA: ₹111 crore (158% YoY increase from ₹43 crore in Q2 FY26)
- EBITDA Margin: 8% (vs 4% in Q2 FY26)
- PAT: ₹(5) crore loss (improved from ₹(51) crore loss in Q2 FY26)
Consolidated H1 FY27 Performance:
- Revenue from Operations: ₹2,448 crore (15% YoY increase from ₹2,133 crore)
- EBITDA: ₹(3) crore loss (vs ₹60 crore profit in H1 FY26)
- PAT: ₹(181) crore loss (vs ₹(115) crore loss in H1 FY26)
Standalone Q2 FY27 Performance:
- Revenue from Operations: ₹622 crore (11% YoY increase from ₹558 crore)
- EBITDA: ₹52 crore (192% YoY increase from ₹18 crore)
- PAT: ₹(11) crore loss (improved from ₹(36) crore loss)
Segment-wise Performance
Specialty Chemicals Segment (37% of Q2 FY27 sales):
- Paste PVC: Domestic demand remained robust throughout the quarter, peaking in September, driven by strong offtake from automotive and footwear sectors. Customers increased inventory levels amid rising prices and constrained availability of imported resin. The Madras High Court directed provisional assessment of Paste PVC imports from EU and Japan effective mid-September 2026, with imports allowed on bond.
- Custom Manufactured Chemicals Division (CMCD): Continued strong growth momentum during Q2 supported by ramp-up of commercialized molecules and healthy demand. Margins remain healthy. Dedicated business development teams in Europe and Japan are generating new product opportunities.
- Refrigerant Gases (R-32): Market seeding underway with initial sales recorded during the quarter. Additional production capacity expected by end of FY27.
Commodity Segment (54% of Q2 FY27 sales):
- Suspension PVC: Domestic demand stayed soft due to seasonal monsoon slowdown. Chinese dumping continues affecting margins. PVC prices improved during quarter driven by rising crude oil and ethylene prices and higher ocean freight rates. Minimum Import Prices helped stabilize prices.
- Value-added Chemicals (VAC): Performance remained subdued with persistent margin pressures. Caustic soda volumes impacted by Karaikal plant shutdown and reduced operations at Mettur. Pricing under pressure due to global oversupply and weak demand.
Management Commentary
Managing Director S. Ganeshkumar stated: "Q2 FY27 marked a meaningful improvement in the Company's performance. Our Specialty Chemicals portfolio continued to deliver strong progress, led by healthy demand in Paste PVC and continued scale-up of CMCD. VAC profitability remained constrained amid ongoing demand-supply imbalances. Going forward, we will continue to focus on strengthening our specialty chemicals portfolio, accelerating development of new molecules, and expanding our manufacturing capabilities."
Financial Position (Consolidated)
Balance Sheet as of September 2026:
- Total Assets: ₹6,280 crore (vs ₹6,316 crore in March 2026)
- Property, Plant and Equipment: ₹4,342 crore
- Capital Work in Progress: ₹301 crore
- Inventories: ₹617 crore
- Cash and Cash Equivalents: ₹430 crore
- Total Equity: ₹1,574 crore
- Total Borrowings: ₹1,749 crore (₹1,007 crore non-current, ₹742 crore current)
- Trade Payables: ₹2,170 crore
Cash Flow Statement (H1 FY27):
- Cash generated from Operations: ₹461 crore
- Net Cash from Operating Activities: ₹458 crore
- Net Cash from Investing Activities: ₹(144) crore
- Net Cash from Financing Activities: ₹(314) crore
- Net Increase in Cash: ₹0.05 crore
Capacity and Business Overview
The company has diversified product portfolio including:
- Specialty Paste PVC: 107,000 mtpa capacity
- Custom Manufacturing: 5,410 mtpa capacity
- Refrigerant Gases (R-32): 2,000 mtpa capacity (swing plant between R-22 and R-32)
- Caustic Soda: 119,000 mtpa capacity
- Hydrogen Peroxide: 34,000 mtpa capacity
- Chloromethanes: 35,000 mtpa capacity
- Suspension PVC: 331,000 mtpa capacity
Recent Developments
- Paste PVC plant in Cuddalore ramped up to full operating capacity with 100% utilization
- Commenced commercial production of R32 refrigerant gas in May 2026
- Multipurpose Block 3 Phase 3, CMCD commenced commercial production in May 2026
- Civil & infrastructure work for next MPB targeted for completion by Q3 FY27