Date: 6 November 2026

Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26)

  • Revenue from operations: ₹134.84 crore (vs ₹134.74 crore in Q2 FY26) - nearly flat YoY
  • EBITDA: ₹11.34 crore (vs ₹19.76 crore in Q2 FY26) - declined by 42.6%
  • Cash Profit: ₹7.38 crore (vs ₹14.93 crore in Q2 FY26) - declined by 50.6%

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Revenue from operations: ₹275.12 crore (vs ₹276.69 crore in H1 FY26) - declined by 0.6%
  • EBITDA: ₹37.37 crore (vs ₹45.42 crore in H1 FY26) - declined by 17.7%
  • Cash Profit: ₹29.72 crore (vs ₹35.13 crore in H1 FY26) - declined by 15.4%

Strategic Developments

Flow Tech Chemicals Integration

  • Acquired remaining 51% stake in Flow Tech Chemicals Private Limited on 16 September 2026, making it a wholly owned subsidiary
  • Board approved draft scheme of amalgamation for submission to NCLT for final approval
  • Flow Tech's manufacturing capabilities in chlorinated paraffin and hydrochloric acid provide established outlet for chlorine
  • Expected to optimize shared resources and facilities, enhance competitive strength, and unlock economies of scale

Hydrogen Supply Agreement

  • Entered into five-year agreement with National Fertilizers Limited (NFL) for supply of hydrogen gas through dedicated pipeline
  • Strengthens offtake arrangements and diversifies commercial relationships for hydrogen byproduct

Solar Power Project

  • Executed PPA and SSSHA for 49.998 MW AC captive solar power plant under OPEX model
  • Proposed 26% equity investment in TPCS Private Limited for the project
  • Expected to diversify energy mix, strengthen energy security, and support greater control over long-term power costs with substantial savings

Operational Challenges and Improvements

  • Facing operational challenges related to chlorine and power supply
  • Experiencing declining capacity utilization
  • Planned installation of new cooling tower by March 2027 to strengthen plant reliability and improve cooling infrastructure
  • Targeted interventions to address power availability and stabilize production

Industry Overview and Outlook

Global Market Challenges

  • Chlor-alkali industry faces pricing pressure from surplus supply, particularly in China
  • Uneven downstream demand
  • Volatile energy costs and geopolitical disruptions add uncertainty to production economics and international trade flows

Indian Market Conditions

  • Domestic caustic soda demand supported by key end-use industries: alumina, textiles, chemicals, pulp and paper
  • Planned capacity additions and competition from imports/exports could influence future capacity utilization and pricing
  • Caustic Soda Lye (CSL) prices directly influence revenue realization

Outlook

  • Near term: Pricing and margins likely to remain sensitive to global supply-demand conditions, CSL prices, chlorine realization and energy costs
  • Medium term: India's industrial demand offers growth opportunities from alumina, chemicals and other established end-use sectors
  • Growth extent depends on demand absorption, capacity additions and export competitiveness

Management Strategy

  • Focused on improving cost efficiency
  • Addressing operational constraints
  • Exploring export opportunities
  • Strengthening downstream integration to mitigate pricing pressure and improve operating performance
  • Prioritizing energy transition to strengthen operational resilience
  • Enhancing monetization of by-products
  • Pursuing deeper value-chain integration

Company Business

Primo Chemicals Limited manufactures chlor-alkali and allied chemical products, including:

  • Caustic soda lye and flakes
  • Liquid chlorine
  • Hydrochloric acid
  • Sodium hypochlorite
  • Hydrogen gas
  • Stable bleaching powder