Company Overview
Indokem Limited reported strong FY26 financial performance with standalone net profit surging 132% to ₹213 lakhs, despite a 3.7% decline in revenue to ₹14,804 lakhs. The profit growth was driven by significant other income of ₹324 lakhs (up from ₹65 lakhs in FY25) including sundry balances written back and gains on asset sales.
Financial Position & Key Metrics
The company maintained a current ratio of 1.54 times with total equity of ₹5,531 lakhs. Key ratios showed improvement with return on equity at 3.92% (FY25: 1.74%) and net profit margin at 1.44% (FY25: 0.60%). Contingent liabilities totaled ₹1,892 lakhs, including disputed GST and income tax demands. The company also disclosed investments in 19 struck off companies with nominal value of ₹1,05,000 lakhs.
Management & Governance
Indokem seeks shareholder approval at its 60th AGM on September 24, 2026 for reappointing Arupkumar Basu as Managing Director and Manish Khatau as Whole-time Director with revised remuneration terms. The company also proposes ratification of material related party transactions with Orchard Acres (aggregate ₹46 crore) and Texcare Middle East LLC (aggregate ₹30 crore) for FY27.
Regulatory & Compliance Matters
The company received a notice from Maharashtra Pollution Control Board in November 2025 directing closure of its Ambernath manufacturing unit due to environmental non-compliances, but resumed operations after corrective measures. The Secretarial Audit Report noted a one-day delay in submitting Annual Report to stock exchange, for which fine was paid. The company also recognized an incremental impact of ₹90.39 lakhs due to implementation of new Labour Codes.
Capital Structure & Subsidiaries
Paid-up share capital stands at ₹29,95,92,300 consisting of 2,78,88,255 equity shares. The company has three subsidiaries: Indokem Bangladesh (Pvt.) Limited, Refnol Overseas Limited (Mauritius), and Texcare Middle East LLC (UAE). No dividend was recommended for FY26 due to accumulated losses.
Related Party Transactions
Total transactions with related parties amounted to ₹2,721 lakhs, with significant dealings involving Orchard Acres (purchases ₹1,513 lakhs, sales ₹262 lakhs) and Texcare Middle East LLC (sales ₹410 lakhs). Outstanding balances include trade receivables of ₹793 lakhs and trade payables of ₹1,137 lakhs with these entities.