Business Operations Overview

Meghmani Organics Limited (MOL) is an integrated diversified chemical company with four business verticals: Crop Protection (insecticides and herbicides), Pigments (phthalocyanine pigments), Crop Nutrition (nano fertilizers and micronutrients), and Titanium Dioxide (through acquired Kilburn Chemicals Limited).

The company operates 9 manufacturing facilities across Gujarat with global presence in 75+ countries.

Q1 FY27 Operational Performance

Crop Protection Segment:

  • Production: 8,880 MT (down 17% YoY)
  • Capacity utilization: 63%
  • Total segment capacity: 55,980 MTPA

Pigments Segment:

  • Production: 3,233 MT (down 14% YoY)
  • Capacity utilization: 39%
  • Total segment capacity: 33,180 MTPA

Capacity utilization and revenue were impacted by softer demand amid continued macroeconomic uncertainties.

Q1 FY27 Financial Performance (Standalone)

Profit & Loss Statement:

  • Revenue from Operations: ₹522.9 crore (down 12% YoY from ₹592.6 crore)
  • COGS: ₹284.4 crore (down 22% YoY)
  • Gross Profit: ₹238.5 crore (up 5% YoY)
  • Gross Margin: 45.6% (vs 38.2% in Q1 FY26)
  • Employee Expenses: ₹31.0 crore (up 31% YoY)
  • Other Expenses: ₹113.9 crore (down 7% YoY)
  • EBITDA: ₹93.7 crore (up 16% YoY)
  • EBITDA Margin: 17.9% (vs 13.6% in Q1 FY26)
  • Depreciation: ₹21.9 crore (flat YoY)
  • Finance Cost: ₹9.1 crore (down 62% YoY)
  • Other Income: ₹12.2 crore (down 30% YoY)
  • PBT: ₹74.9 crore (up 44% YoY)
  • PAT: ₹57.6 crore (up 42% YoY)
  • PAT Margin: 11.0% (vs 6.8% in Q1 FY26)

Segment-wise Revenue Contribution:

  • Crop Protection: ₹391.6 crore (75% of total)
  • Pigments: ₹131.3 crore (25% of total)

Segment-wise EBITDA:

  • Crop Protection: ₹77.8 crore (EBITDA margin 19.9%)
  • Pigments: ₹15.9 crore (EBITDA margin 12.1%)

Balance Sheet Position (Standalone as of March 2026)

Equity & Liabilities:

  • Share Capital: ₹25 crore
  • Reserves & Surplus: ₹1,733 crore
  • Shareholder's Funds: ₹1,758 crore
  • Long-term borrowings: ₹27 crore
  • Short-term Borrowings: ₹506 crore
  • Trade Payables: ₹502 crore
  • Total Equity & Liabilities: ₹2,984 crore

Assets:

  • Property, Plant & Equipment: ₹901 crore
  • Capital WIP: ₹69 crore
  • Investment in Subsidiaries: ₹681 crore
  • Inventories: ₹504 crore
  • Trade Receivables: ₹653 crore
  • Cash & Cash Equivalents: ₹22 crore
  • Total Assets: ₹2,984 crore

Consolidated Financial Performance

Q1 FY27 Consolidated:

  • Revenue from Operations: ₹542.8 crore (down 12% YoY)
  • EBITDA: ₹97.9 crore (up 46% YoY)
  • EBITDA Margin: 18.0% (vs 10.9% in Q1 FY26)
  • PAT: ₹48.2 crore (up 280% YoY)
  • PAT Margin: 8.9% (vs 2.1% in Q1 FY26)

Strategic Initiatives and Updates

Multi Purpose Product (MPP) Plant:

  • Installed capacity: 5,000 MTPA in Dahej
  • Manufacturing high-value new-age insecticides including Flubendamide, Cyfluthrin, Beta Cyfluthrin, Spiromesifen, Pymetrozine, Lambdacyhalothrin, Ethiprole
  • Rationale: Compete with MNCs and gain first-mover advantage

Titanium Dioxide (TiO₂) Business:

  • Acquired Kilburn Chemicals Limited (KCL) from NCLT
  • Plant location: Dahej with 12 MW captive power plant
  • Producing Anatase grade through Sulphate process
  • Applications: Paints & Coatings, Plastics, Ceramic, Rubber, Textile, Paper
  • Market context: India's TiO₂ market size 485,000 MTPA with ~79% imports

Crop Nutrition Business:

  • Commissioned Nano Urea Liquid Fertilizer plant at Sanand
  • Installed capacity: 5 crore bottles (500 ml) per year
  • Product benefits: Equivalent to conventional urea with 80%+ effectiveness vs 30-40% for conventional urea
  • Market context: India is world's largest urea importer with ~70% of fertilizer subsidy

International Expansion:

  • Established wholly owned subsidiary in Brazil
  • Setting up representative office in China

Scheme of Amalgamation

Status:

  • Board approved amalgamation of Kilburn Chemicals Limited (KCL) and Meghmani Crop Nutrition Limited (MCNL) with MOL on April 4, 2026
  • Scheme filed with NCLT Ahmedabad Bench on April 10, 2026
  • Shareholder and creditor meetings conducted June 3-6, 2026
  • Second Motion Petition filed before NCLT on July 2, 2026

Rationale: Simplification of group structure, operational and financial synergies, cost reduction, and stronger market positioning.

Sustainability Recognition

  • Crop Protection segment received Responsible Care® accreditation for 3 years
  • Recognized with EcoVadis Silver Medal for sustainability performance
  • Responsible Care® certification by Indian Chemical Council

Leadership

Mr. Ankit Patel serves as Chairman & Managing Director, with Mr. Karana Patel and Mr. Darshan Patel as Executive Directors overseeing agrochemical and pigments business verticals respectively.

Shareholder Information (as of June 30, 2026)

  • Share Price: ₹48.7
  • Market Cap: ₹1,239 crore
  • Free Float: 51.05%
  • Shares outstanding: 25.4 Crores
  • 3M ADTV (Shares): 14,12,807
  • 3M ADTV (₹ Crore): 7.7