J. G. Chemicals Limited – Investor Presentation Summary

Key Operational Highlights

  • Delivered best-ever quarterly performance in Q1 FY27 with strong demand and volume growth across all end-user applications.
  • Serves over 200 domestic customers and over 50 global customers in more than 10 countries.
  • Manufacturing capacity of 70,000 MTPA of Zinc chemicals, making it the largest manufacturer in Asia and among top 5 globally.
  • Operates three manufacturing plants: Jangalpur (14,400 MTPA Zinc Oxide, 5,040 MTPA Recycled Zinc Ingots), Belur (1,800 MTPA Zinc Oxide), and Naidupeta (43,704 MTPA Zinc Oxide, 2,016 MTPA Recycled Zinc Ingots, 10,080 MTPA Zinc Sulphate).
  • Naidupeta plant is the only IATF approved ZnO facility globally with WHO GMP certification.
  • Key drivers: Strong automotive market growth, tyre industry capex of ₹25,000 crore, raw material security, and capacity expansion.

Segment-wise Performance

  • Revenue segmentation: Rubber & Tyre, Pharma & Chemicals, Agri, Others (ceramics, paints & coatings, electronics & batteries, lubricants, oil & gas and animal feed).
  • The company offers over 90 specialized grades of zinc oxide (up from 80+ at end of FY24).

Financial Highlights

  • Revenue: ₹3,157 Mn
  • EBITDA: ₹363 Mn
  • PAT: ₹261 Mn
  • EPS: ₹6.40/share
  • Margins: EBITDA Margin 11.50%, PAT Margin 8.27%
  • YoY comparison: Revenue up 43.8%, EBITDA up 56.5%, PAT up 59.1%
  • QoQ comparison: Revenue up 35.4%, PAT up 38.1%
  • Drivers: Strong demand conditions, disciplined execution, favourable market outlook

Geographical Revenue Split

  • Over 95% of sales are directly to end customers across more than 10 countries.
  • Domestic vs Export split not specified in quantitative terms.

Balance Sheet Snapshot

  • Share Capital: ₹392 Mn
  • Other Equity: ₹4,892 Mn (FY26)
  • Reserves: Part of Other Equity
  • Non-current Assets: ₹903 Mn (FY26)
  • Current Assets: ₹4,790 Mn (FY26) including Inventories ₹918 Mn, Trade Receivable ₹1,710 Mn, Cash & cash equivalents ₹162 Mn
  • Non-current Liabilities: ₹25 Mn (FY26)
  • Current Liabilities: ₹282 Mn (FY26)
  • Net Debt/Equity: Not explicitly specified

Capex & Cash Flow Health

  • Capital Expenditure: Dahej greenfield facility in advanced stage of completion, expected commissioning in Q3 FY27.
  • Naidupeta brownfield expansion also expected in Q3 FY27.
  • Working capital: Inventories ₹918 Mn, Trade Receivables ₹1,710 Mn (FY26)
  • Investment Rationale: Capacity expansion to meet growing demand, technology upgrades

Strategic & R&D Initiatives

  • Recently launched "LABPURE" Zinc oxide for analytical reagent grade applications.
  • Launched "JG-ZRA" Zinc Oxide Rubber Activator for non-tyre rubber sector.
  • Advanced stages of securing a patent for rubber curing activator jointly developed with premier research institute.
  • R&D center at Naidupeta plant inaugurated recently to strengthen innovation capabilities.
  • Pilot trials of "Devulc" rubber project received good response from key tyre customers.
  • Strategic Rationale: Diversify customer applications, develop specialized products, enhance margins

Industry Trends & Business Environment

  • Healthy Automotive Market Outlook: Q1 FY27 saw volume growth - PV +26.6% YoY, 2W +16.58% YoY, CV +16.48% YoY, 3W +11.32% YoY.
  • Tyre industry capex: Estimated ₹25,000 crore announced by tyre majors, with 25% of tyres produced in India being exported.
  • Raw material security: Global supply chain disruption managed through scale and long-term supplier relationships.
  • New EPR regulations bode well for JGCL's recycled raw material model.
  • Impact: Strong demand from OEMs and replacement market, expansion opportunities

Management Commentary & Growth Outlook

  • Strategic Outlook: Expect to continue strong momentum going forward, current quarter witnessing strong performance.
  • Capacity expansion: Dahej and Naidupeta projects expected commissioning in Q3 FY27.
  • Future focus: Strong in-house R&D to develop new specialized products, diversify customer applications.
  • Risks: Global supply chain disruptions, raw material availability

ESG Updates

  • Recycled-zinc-led model reduces CO2 emissions by 80%, air pollution by 80%, water pollution by 76%, and water use by 40% compared to virgin ore processing.
  • Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IATF 16949:2016, Ecovadis ESG assessment Silver Rating, WHO GMP certification, IP/USP/BP/European Pharmacopoeia licenses, Sustainable ZED Silver Certification.
  • Naidupeta solar Phase 1 is live with further ESG initiatives under evaluation.