Q2 FY27 Financial Performance

  • Revenue from Operations: ₹1,669 Mn (49.7% YoY increase from ₹1,115 Mn in Q2 FY26)
  • Total Expenses: ₹1,494 Mn (39.2% YoY increase)
  • EBITDA: ₹175 Mn (316.7% YoY increase from ₹42 Mn)
  • EBITDA Margins: 10.51% (674 bps improvement from 3.77%)
  • Other Income: ₹1 Mn (75.0% decrease from ₹4 Mn)
  • Depreciation: ₹28 Mn (unchanged)
  • Finance Cost: ₹11 Mn (83.3% increase from ₹6 Mn)
  • PBT: ₹137 Mn (1041.7% increase from ₹12 Mn)
  • Tax: ₹35 Mn (775.0% increase from ₹4 Mn)
  • PAT without Exceptional Item: ₹102 Mn (1175.0% increase from ₹8 Mn)
  • PAT Margins: 6.09% (537 bps improvement from 0.72%)
  • Other Comprehensive Income: ₹2 Mn (improvement from -₹1 Mn)
  • Total Comprehensive Income: ₹104 Mn (1385.7% increase from ₹7 Mn)

H1 FY27 Financial Performance

  • Revenue from Operations: ₹3,431 Mn (41.4% YoY increase from ₹2,426 Mn)
  • Total Expenses: ₹3,077 Mn (31.9% YoY increase)
  • EBITDA: ₹354 Mn (276.6% YoY increase from ₹94 Mn)
  • EBITDA Margins: 10.32% (645 bps improvement from 3.87%)
  • Other Income: ₹5 Mn (unchanged)
  • Depreciation: ₹56 Mn (1.8% increase from ₹55 Mn)
  • Finance Cost: ₹30 Mn (87.5% increase from ₹16 Mn)
  • PBT: ₹273 Mn (875.0% increase from ₹28 Mn)
  • Tax: ₹71 Mn (688.9% increase from ₹9 Mn)
  • PAT without Exceptional Item: ₹202 Mn (963.2% increase from ₹19 Mn)
  • PAT Margins: 5.88% (510 bps improvement from 0.78%)
  • Other Comprehensive Income: -₹2 Mn (deterioration from -₹1 Mn)
  • Total Comprehensive Income: ₹200 Mn (1011.1% increase from ₹18 Mn)
  • Basic/Diluted EPS: ₹16.02 per share*

Historical Financial Performance

Income Statement (₹ Mn)

| Period | Revenue | EBITDA | EBITDA % | PBT | PAT | PAT % |

| FY24 | 6,215 | 670 | 10.78% | 546 | 405 | 6.52% |

| FY25 | 5,379 | 428 | 7.96% | 299 | 220 | 4.09% |

| FY26 | 4,596 | 216 | 4.70% | 82 | 62 | 1.35% |

| H1 FY27 | 3,431 | 354 | 10.32% | 273 | 202 | 5.88% |

Balance Sheet (₹ Mn) as of H1 FY27

Assets:

  • Non-Current Assets: ₹2,184 Mn
  • Property, Plant and Equipment: ₹2,048 Mn
  • Capital work-in-progress: ₹83 Mn
  • Right of use assets: ₹19 Mn
  • Non-current Tax Assets: ₹29 Mn
  • Other Non-current Assets: ₹5 Mn
  • Current Assets: ₹1,800 Mn
  • Inventories: ₹699 Mn
  • Trade receivables: ₹1,002 Mn
  • Cash and Bank Balance: ₹14 Mn
  • Other current assets: ₹85 Mn
  • Total Assets: ₹3,984 Mn

Liabilities & Equity:

  • Equity: ₹2,818 Mn
  • Equity Share Capital: ₹126 Mn
  • Other Equity: ₹2,692 Mn
  • Non-Current Liabilities: ₹270 Mn
  • Provisions: ₹45 Mn
  • Deferred Tax Liabilities: ₹209 Mn
  • Lease Liabilities: ₹16 Mn
  • Current Liabilities: ₹896 Mn
  • Borrowings: ₹686 Mn
  • Trade Payables: ₹113 Mn
  • Other financial liabilities: ₹20 Mn
  • Other current liabilities: ₹62 Mn
  • Provisions: ₹9 Mn
  • Current Tax Liabilities: ₹6 Mn

Cash Flow Statement (₹ Mn)

| Period | Operating | Investing | Financing |

| FY25 | (168) | (255) | 423 |

| FY26 | 416 | (137) | (279) |

| H1 FY27 | 240 | (44) | (196) |

Business Overview and Competitive Advantages

The company highlighted several key strengths:

  • 30 years of legacy in oleochemical manufacturing
  • Leading manufacturer in India for substantial part of overall revenue
  • Unique manufacturing process using by-products of vegetable oils (Acid Oil ~1.25% and DOD ~0.25% of soft oils processed)
  • State-of-the-art manufacturing unit with critical equipment/design from Germany & Switzerland
  • Strong customer relationships in high growth industries (Paint, Printing Inks, Lubricants, Cosmetics)
  • Long-lasting customer relationships of more than 15 years
  • More than 20 years relationship with key raw material suppliers
  • Promoted by Fairfax India Holdings

Manufacturing and R&D Capabilities

  • Highly differentiated "waste-to-wealth" manufacturing capabilities
  • "Make-in-India, Buy within India" strategy
  • Highly skilled employee base with average experience of 10 years
  • Capable of offering blends specific to customer requirements
  • Low switching cost of process lines
  • 'Near-zero rejections' of output
  • ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health and Safety Management) certifications

Management and Governance

Board of Directors:

  • Venkatraman Srinivasan - Managing Director and Chairman (32+ years chemical industry experience)
  • Sonal Vimal Ambani - Independent Director (Former Assistant VP at Morgan Stanley Dean Witter)
  • Sumit Maheshwari - Non-Executive Director (MD and CEO of Fairbridge Capital Private Limited)
  • Darius Dinshaw Pandole - Independent Director (Recently retired as MD and CEO of JM Financial)

Corporate Governance Framework:

  • Rigorous adoption of risk framework by audit committee
  • Internal controls testing and certification by statutory auditors
  • Current auditors are KPMG (audited by Big 4 for last 9 years)
  • Internal online compliance management system
  • Implemented Business Continuity Plan for all plants
  • Helpline system for whistle blowing, sexual harassment, etc.

Business Strategy and Way Forward

The company is working on four key strategies:

1. Cost optimization - Energy savings through detailed energy audit, substitution of imported catalyst with domestic sourced catalyst

2. Product upgradation - Low titre Linoleic Acid for oil field drilling industry, Distilled dimer, Fatty oil upgradation for heating

3. New product - By pass fat from PFAD, Isostearic Acid adoption in cosmetic Industry, adoption of one more raw material to produce niche chemical

4. Geographical diversification - Aim to increase exports by initially 25% and eventually 50% of sales leveraging current level playing tariff with US and proposed FTA with EU/UK

Market Context and Outlook

  • Revenue improvement attributed to higher price realization primarily due to higher raw material cost and higher import finished product cost
  • EBITDA margin improvement due to better realization in domestic market due to lower imports
  • Macros uncertain due to middle east crisis, but consciously optimistic due to:
  • Lower tariff in US
  • FTA/Likely FTA with UK and EU
  • Recent reduction in import duty on crude soya oil from 16.5% to 11.0% likely to improve raw material availability and capacity utilization

Capital Market Data (as of September 30, 2026)

  • Face Value: ₹10.0
  • Market Price (BSE): ₹675.0
  • 52 Week High/Low: ₹826.8/427.9
  • Market Cap: ₹8,502.8 Mn
  • Equity Shares Outstanding: 12.6 Mn
  • 1 Year Avg Trading Volume: 24,000 shares

ESG Initiatives

  • Effluent disposal: Zero Liquid Discharge by Multi Effect Evaporator and Agitated Thin Film Dryer
  • Air Emission: Currently bag filters, scrubber system planned for near future
  • Nonhazardous waste: Sent to GPCB approved Solid Waste Disposable site
  • Hazardous waste: Sent to GPCB approved registered Recycler/Co-processor
  • Social initiatives: Support to Dr. Jivraj Mehta Smarak Health Foundation, armed forces/police forces, animal welfare
  • Near-zero factory accidents since inception