Company Overview

Panama Petrochem Limited (Scrip Code: 524820, NSE Symbol: PANAMAPET) is an Indian-based company engaged in manufacturing specialty petroleum products including liquid paraffin oil, petroleum jelly, and transformer oil for diverse industries including printing, textiles, rubber, pharmaceuticals, and cosmetics. Established in 1982, the company has manufacturing facilities in Ankleshwar, Daman, Taloja, Dahej, and Ambernath, and a wholly-owned subsidiary in UAE.

Financial Performance FY 2025-26

Standalone Performance:

  • Revenue from operations: ₹1,961.81 crore (10.48% growth YoY)
  • EBITDA: ₹210.17 crore (16.52% growth YoY)
  • Profit after tax: ₹143.28 crore (22.89% growth YoY)
  • Earnings per share: ₹23.69 (vs ₹19.27 previous year)
  • Total Assets: ₹1,918.73 crore (FY25: ₹1,523.95 crore)
  • Total Equity: ₹1,053.17 crore (FY25: ₹932.62 crore)

Consolidated Performance:

  • Revenue from operations: ₹3,064.26 crore (9.72% growth YoY)
  • Profit after tax: ₹212.50 crore (13.62% growth YoY)
  • Earnings per share: ₹35.13 (vs ₹30.92 previous year)

Financial Position Highlights

Assets:

  • Property, Plant and Equipment: ₹235.75 crore (Net Block)
  • Capital Work-in-Progress: ₹47.81 crore
  • Inventories: ₹465.01 crore (FY25: ₹326.02 crore)
  • Trade Receivables (Net): ₹472.74 crore (Gross: ₹473.52 crore less ECL allowance of ₹0.78 crore)
  • Cash and Cash Equivalents: ₹32.28 crore

Liabilities:

  • Short-term Borrowings (Secured): ₹52.17 crore
  • Trade Payables: ₹273.84 crore (Micro enterprises: ₹5.23 crore, Others: ₹268.61 crore)
  • Lease Liabilities: ₹0.19 crore

Dividend Declaration

The Board of Directors recommended payment of ₹3 per equity share (150%) of face value ₹2 each as dividend for FY 2025-26. The dividend payout ratio is 12.66% with total outflow of ₹18.15 crore. The record date for dividend entitlement is fixed as Monday, August 17, 2026.

Annual General Meeting

The 44th Annual General Meeting will be held on Monday, August 24, 2026 at 11:30 AM IST through Video Conferencing/Other Audio Visual Means. The business includes adoption of financial statements, declaration of dividend, and re-appointment of directors.

Subsidiary Performance

Panol Industries RMC FZE, UAE (wholly-owned subsidiary):

  • Net sales: ₹1,102.45 crore (vs ₹1,017.17 crore previous year)
  • Net profit: ₹69.21 crore (1.75% decrease YoY)
  • The subsidiary operates a manufacturing facility in Ras Al Khaimah, UAE with strategic port connectivity serving GCC and MENA regions.

Contingent Liabilities & Risks

  • Income Tax disputes: ₹13.33 crore (pending with ITAT) + ₹0.16 crore (Commissioner Appeal)
  • Customs disputes: ₹15.84 crore (pending with CESTAT, Mumbai)
  • Bank Guarantees: ₹8.54 crore
  • Corporate Guarantees: ₹159.97 crore (to subsidiary Panol Industries RMC FZE)
  • Management does not expect these claims to succeed and no provision has been recognized

Corporate Social Responsibility

The company spent ₹3.79 crore on CSR initiatives during FY 2025-26, primarily in healthcare and education sectors.

Ratio Analysis

  • Current Ratio: 3.02 (FY25: 4.09)
  • Debt-Equity Ratio: 0.05 (FY25: Nil)
  • Return on Equity: 14.43% (FY25: 13.04%)
  • Net Profit Ratio: 7.30% (FY25: 6.57%)
  • Inventory Turnover Ratio: 4.96 (FY25: 5.17)

Regulatory Compliance & Auditors

The company has complied with all applicable SEBI Listing Regulations and Companies Act, 2013 requirements. No material regulatory orders or penalties were reported. Auditors issued an unmodified opinion with key audit matters including inventory existence and assessment of contingent liabilities.

Important Dates

  • Record Date for Dividend: August 17, 2026
  • Remote e-voting period: August 21, 2026 (9:00 AM) to August 23, 2026 (5:00 PM)
  • AGM Date: August 24, 2026 (11:30 AM)