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Epigral Q3 FY26: Revenue Grows 2% to ₹603 Cr; EBITDA Margins Contract to 17% Amid Cost Pressures
Epigral reported a marginal 2% sequential revenue growth to ₹603 crores in Q3 FY26, though EBITDA fell 22% to ₹103 crores due to lower realizations and higher raw material costs. The Derivatives and Specialty segment now contributes 52% of total revenue, aligning with the company's long-term target of 70%. Management highlighted a volume recovery starting mid-November 2025 and expects significant contributions from the chlorotoluene value chain starting FY27. Despite current margin pressure, the company maintains a healthy net debt to EBITDA ratio of 1.0x.
Key Highlights
Revenue grew 2% QoQ to ₹603 crores; EBITDA margins contracted to 17% from 22% in 9M FY26.
Derivatives and Specialty business contribution increased to 52% of total revenue.
Net debt remains stable at ₹557 crores with a comfortable Net Debt/EBITDA ratio of 1.0x.
Chlorotoluene value chain and CPVC capacity doubling on track for significant FY27 impact.
ECU realizations remained steady at approximately ₹29,000 to ₹30,000 per unit.
💼 Action for Investors
Investors should monitor the recovery in realizations and the ramp-up of the chlorotoluene plant in FY27. The shift toward high-margin specialty derivatives provides a long-term cushion against commodity price volatility.
Epigral Q3 FY26 Revenue at ₹603 Cr; PAT Drops 62% YoY to ₹39 Cr Amid Margin Pressure
Epigral reported a weak Q3 FY26 with PAT falling 62% YoY to ₹39 Crore, primarily due to lower realizations and higher raw material costs. Revenue declined 7% YoY to ₹603 Crore, though it showed a marginal 2% sequential growth. EBITDA margins contracted significantly to 17% from 23% in the previous quarter. Despite short-term headwinds from an extended monsoon, management expects a recovery in Q4 FY26 and remains focused on its massive expansion projects in CPVC and Epichlorohydrin set for FY27.
Key Highlights
Revenue stood at ₹603 Cr, down 7% YoY but up 2% QoQ, with 52% contribution from Derivatives & Specialty segment.
PAT declined significantly to ₹39 Cr from ₹104 Cr in Q3FY25 and ₹51 Cr in Q2FY26.
EBITDA margins compressed to 17% due to softer product realizations and elevated input costs.
Net Debt increased to ₹557 Cr with a Net Debt/EBITDA ratio of 1.0x as of December 2025.
Major capex of ₹337 Cr spent in 9MFY26 on doubling CPVC and Epichlorohydrin capacities.
💼 Action for Investors
Investors should monitor the recovery in realizations and margin stabilization in Q4 as guided by management. While current earnings are under pressure, the long-term growth depends on the successful commissioning of high-value specialty chemical capacities in FY27.
Epigral Receives ₹52.52 Crore Income Tax Demand Notice for AY 2022-23
Epigral Limited has received an assessment order and demand notice of ₹52.52 crore from the Deputy Commissioner of Income Tax, Vadodara. The demand pertains to Assessment Year 2022-23 (Financial Year 2021-22) and includes applicable interest. The company intends to contest the order by filing a rectification application and an appeal, asserting that the demand is not maintainable. Management states there is currently no impact on the company's financial operations or activities.
Key Highlights
Income Tax demand notice received for ₹52.52 crore including interest
Pertains to Assessment Year 2022-23 under section 143(3) of the Income-tax Act
Company plans to file rectification application and appeal against the order
Management maintains that the demand is not maintainable and has no immediate financial impact
💼 Action for Investors
Investors should monitor the outcome of the appeal process as the demand amount is significant, though the company is currently contesting the liability.