Key Corporate Development

Received NCLT approval for the amalgamation of two wholly owned subsidiaries, Kilburn Chemicals Limited and Meghmani Crop Nutrition Limited, with Meghmani Organics Limited. This creates a single unified legal entity aimed at achieving optimal utilization of existing resources through consolidation of operations and deriving operational and financial synergies.

Q2 FY27 Standalone Financial Performance

  • Revenue: INR658 crores, up 18% year-on-year and 26% quarter-on-quarter
  • Net Profit: INR45 crores, increased by 6% year-on-year
  • EBITDA: INR70.9 crores, remained flat year-on-year
  • EBITDA Margin: Impacted by elevated input and logistics costs

Segment-wise Performance (Q2 FY27)

Crop Protection Segment (75% of total revenue)

  • Production: 10,000 metric tons
  • Capacity Utilization: 72%
  • Revenue: INR496 crores
  • EBITDA: INR54 crores
  • EBITDA Margin: 11%

Pigment Segment (25% of total revenue)

  • Production: 4,252 metric tons
  • Capacity Utilization: 51%
  • Revenue: INR161 crores
  • EBITDA: INR16 crores
  • EBITDA Margin: 10%

H1 FY27 Standalone Financial Performance

  • Revenue from Operations: INR1,181 crores, up 3% year-on-year
  • Net Profit: INR103 crores, increased by 23% year-on-year
  • EBITDA: INR164 crores, grew by 9% year-on-year

Consolidated Financial Performance (Q2 FY27)

  • Revenue: INR666 crores, up 16% year-on-year
  • Net Profit: INR33.9 crores, grew by 193% year-on-year
  • EBITDA: INR73 crores, grew by 40% year-on-year
  • EBITDA Margin: 11% compared to 9% in corresponding quarter previous year

Consolidated Financial Performance (H1 FY27)

  • Revenue: INR1,209 crores, up 2% year-on-year
  • Net Profit: INR82.1 crores, increased by 239% year-on-year
  • EBITDA: INR171 crores, grew by 44% year-on-year
  • EBITDA Margin: 14.1% compared to 10% in corresponding previous year

Debt Position (as of September 30, 2026)

Standalone Basis

  • Total Debt: INR497 crores
  • Short-term Debt: INR435 crores
  • Long-term Debt: INR62 crores
  • Debt-to-Equity Ratio: 0.27x

Consolidated Basis

  • Total Debt: INR661 crores
  • Short-term Debt: INR438 crores
  • Long-term Debt: INR223 crores
  • Debt-to-Equity Ratio: 0.41x
  • Debt Repayment till September 30: Approximately INR64 crores

Business Segment Updates

Crop Nutrition Segment

Commenced production of newly introduced Nano fertilizer products (Nano DAP, Nano NPK, and Nano Zinc) at existing manufacturing facility in Sanand. These products complement existing portfolio and position the company to participate in growing adoption of next-generation crop nutrition solutions.

Titanium Dioxide Segment

Operations continue suspended due to commercial unviability from elevated raw material costs and weaker price realization. Ministry of Finance re-imposed antidumping duty on titanium dioxide imports from China for 5 years on October 24, 2026. However, sulfuric acid (key raw material) prices remain significantly elevated at 7-8x normal levels, making restarting operations commercially unviable.

Key Q&A Highlights

Trade Receivables

Increased by INR220 crores in current quarter due to extended credit terms offered to customers in challenging market conditions. Days outstanding increased from 100-110 days to 125+ days. Normalization expected to be challenging in near term, targeting improvement to 110-115 days range.

Pigment Business

Export- domestic sales mix varies quarter-to-quarter, with overall export typically 75-80% of pigment segment. Focus on markets with better realization. Profitability improvement achieved to 10% EBITDA margin in recent quarters.

Margin Pressure

Sharp increase in input and logistics costs with flat realizations impacted margins. Energy costs increased drastically, coal prices significantly higher. Logistics costs started declining recently. Market volatility makes price pass-through challenging.

Guidance

  • Crop Protection: Double-digit top-line growth for next 2-3 years, targeting 15-17% EBITDA margin long-term
  • Pigments: Top-line around INR600-650 crores, targeting 10-11% EBITDA margin
  • Crop Nutrition: Double-digit growth expected over next 3 years, EBITDA margin 20-22%
  • Titanium Dioxide: Too early to provide guidance, operations remain suspended

Capacity Utilization & Growth

Crop protection operating at 72% capacity utilization. Growth driven by new product registrations in pipeline up to 2031 across 70+ countries. Product mix optimization and currency benefits contributing to revenue growth.

Market Trends

Europe facing challenging conditions with high costs and impacted demand. US market showing better margins and demand. Minimal agrochemical business in Europe due to regulatory challenges.

Dividend Policy

Dividends were regularly given but paused in last 2-3 years due to volatile conditions and cash flow focus. Will consider resuming dividends when market improves and cash flow strengthens.