Financial Performance Highlights (Consolidated)

Q1 FY27 Financial Results:

  • Operating Revenue: ₹433.4 crore (24.9% YoY growth from ₹346.9 crore in Q1 FY26)
  • Gross Profit: ₹193.9 crore (22.6% YoY growth from ₹158.2 crore)
  • EBITDA: ₹65.5 crore (17.5% YoY growth from ₹55.7 crore)
  • EBITDA Margin: 15.1% (vs 16.1% in Q1 FY26)
  • Profit After Tax: ₹39.6 crore (23% YoY growth from ₹32.2 crore)
  • PAT Margin: 9.1% (vs 9.3% in Q1 FY26)
  • Tax Rate: 28.05% for Q1 FY27

Business Segment Performance

Chromium Business:

  • Strategic shift towards higher value-added derivatives (Chromic Acid, Chrome Oxide Green)
  • Higher value-added derivatives contributed 50% of sales vs 40% in FY26
  • Maintenance shutdown at Vizag facility during quarter, but no revenue impact due to inventory
  • Gross margins currently at 44-45%, targeting 50% by year-end

Barium Business:

  • One-time impact of ₹8 crore due to retrospective baryte price adjustment for past 2 years
  • Targeting sustainable EBITDA margins of 25%
  • 70% of production exported
  • Byproduct sulphur values increased 300-400% in recent months

Strontium Business:

  • Q1 FY27 Revenue: ₹25 crore (nearly matching full FY26 revenue)
  • Capacity: 10,000 tonnes
  • Current utilization: 50%, targeting 65-75% by year-end
  • EBITDA positive but not at target margins yet

Operational Updates

South African Mining Operations:

  • Acquisition completed in November 2025
  • Currently progressing with refurbishment, engineering, stability assessments, recruitment
  • Expected operations commencement: Second half of FY27
  • Expected material flow to India: Q3 FY27
  • Capex requirement: ₹20-25 crore

Solar Power Expansion:

  • Planning to add 20 MW solar capacity (6x increase from current 5 MW)
  • Expected savings: 15-20% on power costs
  • Total capex: ₹5-6 crore (rest under SPV model)

Capex Guidance

FY27 Capital Expenditure: ₹200-250 crore allocated to:

  • DMSO Project: ₹205-240 crore total project cost (₹68 crore spent up to June 30, 2026)
  • Chromium Derivatives Expansion: ₹50 crore
  • Barium Backward Integration: ₹40 crore
  • South Africa Operations: ₹20-25 crore

Market Environment & Challenges

Logistics Costs:

  • Q1 FY27: 9-10% of revenue
  • Q2 FY27 Expected: Up to 20% of revenue due to geopolitical tensions in West Asia
  • Ocean freight costs increased sharply
  • Company focusing on domestic sales to mitigate impact

Geographic Revenue Mix:

  • Domestic: 45%
  • Export: 55%

Strategic Initiatives

Chrome Metal Project:

  • Planning strategic partnership with long-term supply agreement
  • Expected to be margin accretive and provide volume visibility
  • Announcement expected soon

European Market:

  • EU anti-dumping duties on Chinese barium carbonate benefiting margins
  • Estimated 4-5% margin addition on European pricing
  • Long-term supply agreement for Chrome Oxide Green being negotiated

Financial Position

Debt Levels (as of March 31, 2026):

  • Total Debt: ₹527 crore
  • Debt-to-Equity: 0.49

Foreign Exchange:

  • Other income included ₹11.9 crore net foreign exchange gains
  • Driven by 31% higher exports in Q1 FY27 vs Q4 FY26

Forward Outlook

  • Targeting 20% EBITDA margin in medium term
  • Expecting H2 FY27 performance improvement
  • Multiple growth levers: new specialty chemicals, barium backward integration, strontium scaling, South African operations
  • Focus on being lowest cost producer in operated chemistries