• Type of Event: Q1 FY27 Earnings Conference Call and post-results investor interaction.
  • Date and Time: The call was held on Monday, 27th July, 2026, at 5:00 p.m. IST.
  • Purpose: To discuss the company's financial and operational performance for the first quarter of the financial year 2026-27.
  • Management Participants: The call was attended by Mr. Maulik Patel (Chairman and Managing Director), Mr. Kaushal Soparkar (Executive Director), Mr. Rakesh Agrawal (Chief Financial Officer), and Mr. Milind Kotecha (Investor Relations & Strategy). The call was moderated by Mr. Arya Patel from Emkay Global Financial Services Limited.
  • Presentation Availability: An earnings presentation was released earlier on the day of the call. The transcript of the call was submitted to the exchanges for dissemination.
  • UPSI Statement: The transcript is a regulatory filing; no specific statement regarding UPSI was made in the provided text.

Financial Highlights Discussed:

  • Financial Period: Q1 FY27 (Quarter ending June 2026).
  • Revenue: Increased by 15% Year-on-Year (YoY) to INR 709 crores from INR 615 crores in Q1 FY26, driven by increased sales volume and improved realizations.
  • EBITDA: Increased by 10% YoY to INR 179 crores from INR 163 crores. EBITDA margin stood at 25% versus 27% in Q1 FY26.
  • PAT: Grew by 25% YoY to INR 99 crores, compared to an adjusted PAT of INR 79 crores in Q1 FY26 (the previously reported PAT of INR 160 crores included a one-time deferred tax adjustment of INR 81 crores).
  • ROCE: Stood at 16% as of 30th June 2026, compared to 24% as of 30th June 2025. If capital work in progress is excluded, ROCE was 18% for Q1 FY27.
  • Net Debt-to-EBITDA: Stood at 0.8x as of 30th June 2026 versus 0.6x as of 30th June 2025.
  • Net Debt: Stood at INR 474 crores versus INR 439 crores as of 30th June 2025.
  • Capex: INR 62 crores was spent on capex in Q1 FY27.

Strategic Updates & Guidance:

  • Operating Environment: Q1 was highly challenging due to the West Asia conflict, which impacted raw material costs, finished goods logistics, and created market volatility. A visible recovery was noted, and the macro environment is expected to stabilize.
  • Capacity Expansion: Ongoing projects for Epichlorohydrin (ECH) and CPVC Resin are progressing on schedule and within budget.
  • New Capex Approval: The Board approved a strategic capex of INR 600 crores for two new projects:

1. Epoxy Resin & Formulations Plant: Capacity of 125,000 tons per annum. More than 50% of the raw material value will be sourced internally from existing ECH and caustic soda production.

2. Multipurpose Plant (MPP): To manufacture downstream products of the ECH and chlorotoluenes value chain, targeting pharmaceutical/agrochemical intermediates and water treatment chemicals.

  • Pilot Plant: A pilot facility for both the epoxy resin and MPP projects is expected to be operational by Q2 FY27 (September 2026) to validate product quality and facilitate customer approvals.
  • Volume & Utilization: Capacity utilizations for Q1 were provided: Caustic Soda (~75%), ECH (~70-75%), CPVC (~50-55%), Chloromethanes (~100%), and Hydrogen Peroxide (~85-90%).
  • Realizations: ECU realization for Q1 was approx. INR 35,000-36,000 (Q4 FY26: ~INR 30,000). Current ECH realization is approx. INR 180-185 per kg.
  • Long-term Targets: The company targets a revenue CAGR of 15-20% over the next 3-5 years and aims to maintain an ROCE of around 20% for new projects.

Additional Notes Section

  • The document is the submitted transcript of the earnings conference call, filed in compliance with SEBI LODR Regulation 30.
  • The transcript includes a full Q&A session with analysts, covering details on new projects, market dynamics, raw material prices, and competitive landscapes.
  • No separate attachments (like the investor deck) were included in the provided data text; the summary is based solely on the transcript.
  • Financial data for the quarter was disclosed and discussed in detail during the call.

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