Q1 FY27 Financial Performance

  • Revenue from Operations: ₹293.7 crore (Q1 FY26: ₹309.5 crore), representing a 5.1% year-on-year decline
  • Gross Profit: ₹146.9 crore (Q1 FY26: ₹141.0 crore), showing 4.2% improvement year-on-year
  • Gross Profit Margin: 50.0% (Q1 FY26: 45.6%; Q4 FY26: 42.7%)
  • EBITDA: ₹42.4 crore (Q1 FY26: ₹42.3 crore), remaining virtually stable despite lower revenues
  • EBITDA Margin: 14.4% (Q1 FY26: 13.7%; Q4 FY26: 7.8%)
  • Profit After Tax: ₹29.1 crore (Q1 FY26: ₹33.6 crore), declining by ₹4.5 crore year-on-year
  • PAT Margin: 9.9% (Q1 FY26: 10.8%)
  • EPS: ₹23.16 (Q1 FY26: ₹26.70)
  • Other Income declined to ₹6.2 crore from ₹11.8 crore in Q1 FY26, contributing to PAT decline

Operational Highlights

  • Erratic monsoon conditions impacted demand for Agrochemical Intermediates product group
  • Strong performance from other product groups largely offset the Agrochemical Intermediates decline
  • Revenue reached approximately 95% of Q1 FY26 levels despite challenges
  • Contract manufacturing projects with superior margin profiles supported revenue traction
  • Prudent supply chain management prevented stockouts during global raw material volatility
  • Market share maintained in key products while continuing portfolio diversification

Key Milestone Achievement

  • Dedicated manufacturing project successfully completed on July 23, 2026, as per agreed timelines
  • Supports supplies under 5-year long-term supply agreement with leading specialty chemicals company
  • Dedicated facility established with planned capex of ₹40 crores
  • Customer commitment includes trade advance of ₹25 crore

Strategic Impact

  • Demonstrates Excel's project execution capability through timely completion
  • Reinforces customer confidence in manufacturing capabilities
  • Diversifies revenue streams through specialty chemical manufacturing
  • Creates platform for additional opportunities in contract manufacturing segment

Management Commentary

Mr. Ravi Ashwin Shroff, Managing Director, stated: "We are pleased to announce the successful completion of the project for production for supplies against the long-term supply agreement on 23rd July 2026. The project has been completed as per the timelines agreed with the customer. This achievement underscores our execution abilities and our commitment towards fulfilling the customer expectations. This achievement will further strengthen our position as a reliable contract manufacturing partner, whilst diversifying our revenue base. We are hopeful that this will set the base for more opportunities for the company in the contract manufacturing space."

Business Outlook

  • Near-term demand challenges in Agrochemical Intermediates expected to persist
  • Non-agrochemical product groups expected to maintain growth momentum and support overall performance
  • Targeting higher volumes under long-term specialty chemical supply agreement (announced November 2025) with new dedicated manufacturing setup
  • Raw material price volatility, supply availability, and shipping disruptions expected to continue into Q2 FY27
  • Company remains agile in managing supply chain challenges
  • Development initiatives in Biocides and Performance Solutions remain on track
  • Product launches targeted during FY27

Capital Expenditure Plans

  • Planned investment of ₹200-300 crores over next three years in plant upgrades, product innovation, capacity expansion, and technology
  • ₹30-40 crores per year reserved for ongoing maintenance and improvements
  • Sustainability initiatives include investments in solar renewable energy

Manufacturing Facilities

  • Roha Site: Main production hub for phosphorus-based products, handles highest quantities of yellow phosphorus in India
  • Lote Site: Leading producer of Organo phosphonates used as chelating agents and biocides
  • Vizag Facility: Acquired in 2019, located in SEZ Atchutapuram, manufactures specialty intermediates with expansion potential

Historical Context

  • Company established in 1941 with objective to make India self-reliant in chemicals
  • Leading player in basic and advanced Phosphorous derivatives
  • Pioneer in Organic Waste Management and Municipal Solid waste management in India
  • Manufacturing facilities at Roha, Lote, and Vishakhapatnam
  • Returned ₹150.7 crores to shareholders as dividends in last 10 years up to FY25
  • 14% CAGR growth in market cap in last 10 years up to FY26