Q2 FY27 Financial Performance

  • Revenue: ₹752 crore, up 28% YoY from ₹589 crore in Q2FY26
  • Sales Volume: Grew 6% YoY despite challenging market conditions
  • Derivatives & Specialty Business Contribution: 57% of revenue vs 50% in Q2FY26
  • EBITDA: ₹136 crore, up 3% YoY from ₹132 crore
  • EBITDA Margin: 18% (vs 23% in Q2FY26), impacted by high raw material costs
  • PAT: ₹64 crore, up 26% YoY from ₹51 crore
  • PAT Margin: 9%
  • EPS: ₹14.9

H1 FY27 Financial Performance

  • Revenue: ₹1,461 crore, up 21% YoY from ₹1,204 crore
  • EBITDA: ₹315 crore, up 7% YoY from ₹296 crore
  • EBITDA Margin: 22%
  • PAT: ₹164 crore, up 25% YoY from ₹131 crore (adjusted for tax benefit)
  • PAT Margin: 11%
  • Net Debt/EBITDA: 0.9x as of 30th September 2026 vs 0.8x as of 30th September 2025

Tax Adjustment Note

The company shifted to new tax rate of 25.17% in FY26, resulting in reduction of deferred tax liability by ₹81 crore. Excluding this benefit, H1FY26 PAT would have been ₹131 crore instead of ₹212 crore, and FY2026 PAT would have been ₹252 crore instead of ₹333 crore.

Key Ratios as of 30th September 2026

  • ROCE: 16% (TTM EBIT, includes Capital Work in Progress)
  • ROE: 15% (TTM PAT, adjusted for tax benefit)
  • Net Debt to Equity: 0.2x
  • Interest Coverage Ratio: 12.2x

Strategic Highlights and Capex Update

  • H1FY27 Capex Spend: ₹88 crore
  • Board Approved New Projects:
  • Epoxy Resin & Formulations plant with capacity of 125,000 TPA
  • Multi-Purpose Plant (MPP) downstream for Epichlorohydrin and Chlorotoluene Value Chain
  • Both projects expected to commission by H2FY28
  • Projects in Final Stages (expected commissioning Q3FY27):
  • CPVC Resin expansion: Additional 75,000 TPA (total 150,000 TPA)
  • Epichlorohydrin expansion: Additional 50,000 TPA (total 100,000 TPA)
  • Wind Solar Hybrid Power Plant: Additional 19.80 MW

Management Commentary

Mr. Maulik Patel, Chairman and Managing Director, stated: "Despite a challenging operating environment in Q2FY27, we achieved revenue growth of 28%, driven by volume growth and improved realisations. Elevated raw material prices had its impact on EBITDA margins; however, our H1FY27 performance remained resilient, with revenue growth of 21% and an EBITDA margin of 22%. With the second half of the fiscal traditionally delivering stronger performance than the first, we maintain positive outlook for H2FY27."

Company Overview

  • Founded: 2007
  • Employees: 1,100+
  • Capacity: Chlor-Alkali – 421 KTPA, Derivatives – 250 KTPA
  • Manufacturing Facility: Fully-integrated & automated complex at Dahej, Gujarat
  • 5-Year Revenue CAGR (FY26): 25%
  • 5-Year EBITDA CAGR (FY26): 17%

Product Portfolio and Market Position

  • Chlor-Alkali Products:
  • Caustic Soda (400 KTPA): 4th largest producer in India
  • Caustic Potash (21 KTPA): 3rd largest producer in India
  • Derivative Products:
  • CPVC Resin: Expanding to become world's largest manufacturer
  • Epichlorohydrin: 1st company in India to produce sustainable bio-based ECH
  • Chloromethanes: 6th largest producer in India
  • Hydrogen Peroxide: 5th largest producer in India
  • Chlorotoluenes Value Chain: 1st company in India to commission this value chain

Growth Strategy

  • Forward & Backward Integration
  • Opportunities in high growth sectors
  • New Value Chains in specialty chemicals
  • Achieving economies of scale

ESG Initiatives

  • Focus on best technology for resource management
  • JV to set up 38.14 MW Wind-Solar Hybrid Power Plant for internal consumption
  • First company to produce sustainable bio-based Epichlorohydrin
  • Strong safety protocols and community engagement programs