Financial Performance (Consolidated)

Q2 FY27 (Quarter Ended September 2026):

  • Revenue from Operations: ₹121.3 crores (vs. ₹98.4 crores in Q2 FY26; +23.3% YoY)
  • EBITDA: ₹10.8 crores (vs. ₹13.6 crores in Q2 FY26)
  • EBITDA Margin: 8.9% (vs. 13.8% in Q2 FY26)
  • Profit Before Tax (PBT): ₹10.5 crores (vs. ₹14.8 crores in Q2 FY26)
  • Profit After Tax (PAT): ₹7.6 crores (vs. ₹11.0 crores in Q2 FY26)
  • Basic and Diluted EPS: ₹1.40 per share

H1 FY27 (Half Year Ended September 2026):

  • Revenue from Operations: ₹230.20 crores (vs. ₹213.8 crores in H1 FY26; +7.7% YoY)
  • EBITDA: ₹24.3 crores (vs. ₹28.7 crores in H1 FY26)
  • EBITDA Margin: 10.5% (vs. 13.4% in H1 FY26)
  • Profit Before Tax (PBT): ₹25.5 crores (vs. ₹32.60 crores in H1 FY26)
  • Profit After Tax (PAT): ₹18.7 crores (vs. ₹24.1 crores in H1 FY26)
  • Basic and Diluted EPS: ₹3.43

Financial Performance (Standalone)

Q2 FY27:

  • Revenue from Operations: ₹120.0 crores (vs. ₹96.9 crores in Q2 FY26; +23.9% YoY)
  • EBITDA: ₹10.5 crores (vs. ₹14.2 crores in Q2 FY26)
  • EBITDA Margin: 8.8% (vs. 14.6% in Q2 FY26)
  • Profit Before Tax (PBT): ₹10.7 crores (vs. ₹16.2 crores in Q2 FY26)
  • Profit After Tax (PAT): ₹7.8 crores (vs. ₹12.1 crores in Q2 FY26)
  • Basic and Diluted EPS: ₹1.43

H1 FY27:

  • Revenue from Operations: ₹230.4 crores (vs. ₹199.8 crores in H1 FY26; +15.3% YoY)
  • EBITDA: ₹23.4 crores (vs. ₹27.9 crores in H1 FY26)
  • Profit Before Tax (PBT): ₹23.9 crores (vs. ₹33.0 crores in H1 FY26)
  • Profit After Tax (PAT): ₹17.4 crores (vs. ₹24.6 crores in H1 FY26)
  • Basic and Diluted EPS: ₹3.17

Key Operational & Strategic Updates

Capacity Expansion & Egypt Facility:

  • The Egypt manufacturing facility's capacity was increased from the prospectus-stated 30,000 MTPA to 60,000 MTPA.
  • Partial capacity is expected to commence by 31st December 2026.
  • Remaining capacity is scheduled for commissioning by 31st March 2027.
  • The facility offers strategic advantages: duty-free access to the United States through qualified industrial zones, preferential trade access to South American markets, and a cost-competitive production hub.
  • Revenue contribution from Egypt is expected to be meaningful from FY28 onwards, strengthening the export mix and long-term margin profile.
  • For FY27, management expects ₹25-30 crores in revenue from the Egypt plant (based on 2.5 months of sales from January to March).
  • Once operational, the Egypt plant will handle most exports, with exports from India limited to East Africa, Bangladesh, and neighboring countries.

Palghar Facility Utilization:

  • The expanded Palghar manufacturing facility is currently operating at 30-35% utilization.
  • Management aims to ramp up utilization to 50% over the next 1-1.5 years.

New Business Initiatives & Segment Performance:

Platinum Oleo Chemicals:

  • Commenced sales of oleochemical derivatives and specialty chemicals.
  • Q2 FY27 Sales: ₹11.4 crores
  • H1 FY27 Sales: ₹16.7 crores
  • The company is initiating market development in India and exploring export opportunities.

Rivadu Lifesciences:

  • In September 2026, entered into an exclusive sale and purchase agreement with South Korea-based CAREGEN Co., Ltd for its Korglutide health functional food products in India.
  • The agreement includes the potential for local manufacturing if sales pick up.
  • Korglutide is a molecule used for weight management, competing with products like Mounjaro and Ozempic.
  • The intended price point for a 30-day dosage is ₹10,000 to ₹12,000, which is expected to be 10-20% cheaper than competitors.
  • Sales and marketing strategy involves a distribution model, prescription model, and OTC marketing. Positioning strategy is under study with agencies, to be finalized in the next 10-15 days.

Management Commentary on Market Conditions & Margins

Industry Demand:

  • The PVC pipe industry witnessed significant degrowth of 18-20% from April to September 2026, as per data received and discussions with companies like Reliance.
  • Demand started picking up from mid-September 2026.

Margin Pressure & Ocean Freight:

  • The primary reason for margin contraction in H1 FY27 is a surge in ocean freight costs.
  • In Q2 FY27, export revenue was ₹24 crores, but the associated logistics cost was ₹5 crores.
  • This is compared to Q1 FY27, where export revenue of ₹22 crores had a logistics cost of ₹2.5 crores.
  • Management indicated no immediate signs of freight costs reducing and does not expect relief in the next 3-4 months.
  • Other factors affecting profitability include the ongoing transition/ramp-up of the expanded manufacturing facility and a temporarily lower share of high-margin products (lead-free PVC).
  • Gross margin pressure was also noted: a 1-2% decline in CPVC products QoQ and a 3-4% drop in lead-free stabilizers in H1 FY27 vs. H1 FY26.

Long-Term Guidance:

  • Management remains confident in achieving a long-term revenue CAGR of 35% over the next 3 years.
  • EBITDA margins are projected to be maintained in the range of 13-15% going forward.
  • The company is currently debt-free.

Senior Management Appointments

The company has strengthened its organizational capability with several key hires:

  • Mr. Ashok Bothra: Chief Financial Officer (joined in September 2025)
  • Mr. Milind Magar: Head of CPVC Division
  • Mr. Anand Shankar: Head of R&D and Technical Research
  • Mr. Nilesh Bendale: Chief Marketing Officer (hired last year)
  • Dr. Frank: Global R&D Head (based in Germany)

Capital Expenditure & Assets

  • Other Non-Current Assets increased sharply from ₹1.94 crores in March 2026 to ₹28.96 crores in September 2026. This increase is primarily due to capital advances given to project suppliers by the company's Egypt subsidiary.