Financial Performance Highlights
J.G. Chemicals Limited reported record consolidated financial results for FY26 with revenue of ₹9,729.30 million (14.74% growth from FY25), EBITDA of ₹978.56 million, and profit after tax of ₹686.49 million (2.83% growth). Net profit attributable to owners rose to ₹658.78 million with basic EPS at ₹16.81. The company maintained a strong net cash position of ₹1,538.67 million with zero-debt balance sheet.
Expansion and Strategic Initiatives
The company announced a major ₹1,000 million Dahej greenfield expansion project funded entirely from internal accruals. Located on 11.43 acres in Gujarat's chemical zone, the facility targets Q3 FY27 commissioning and will increase installed capacity from 77,000 MTPA to over 122,000 MTPA by FY29, representing over 50% growth. The expansion has revenue potential of approximately ₹9,000 million at full utilization with break-even projected at 30-35% utilization.
Strategically, the company is focusing on diversifying its revenue mix from 85% rubber/tyre sector to 30% non-tyre segments within 3-4 years, targeting ceramics, pharmaceuticals, cosmetics, agriculture, and specialty chemicals. The Dahej facility provides proximity to Gujarat's industrial corridor and export advantages through nearby ports.
Corporate Actions and Dividend
The Board recommended a final dividend of ₹1.10 per equity share (11% on face value of ₹10) with record date set for September 23, 2026. The 25th Annual General Meeting is scheduled for September 30, 2026, through video conferencing, with agenda items including financial statement adoption, dividend declaration, director reappointments, and related party transaction approvals.
Subsidiary and Related Party Transactions
BDJ Oxides Private Limited, the 94.13% owned subsidiary, contributed significantly with net assets of ₹2,110.11 million (39.93% of consolidated net assets) and profit share of ₹472.56 million (71.73% of consolidated profit). The company seeks shareholder approval for transactions with BDJ Oxides aggregating ₹2,069.50 million during FY27.
Regulatory Compliance and Audit
The company fully utilized ₹1,161.92 million of IPO proceeds for subsidiary debt repayment, working capital, and capex as per offer objectives. Auditors issued an unmodified opinion on the consolidated financial statements, identifying revenue recognition and inventory valuation as key audit matters. The company maintains compliance with SEBI Listing Regulations and Companies Act requirements.
Operational and Market Position
J.G. Chemicals supplies to 9 of the world's 10 largest tyre manufacturers with over 200 domestic and 50+ international customers. The company exports to more than 10 countries under the LUXMI brand and holds unique certifications including IATF, WHO GMP, and global pharmacopoeia approvals for its pharmaceutical-grade zinc oxide production.