💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents, though operating margins for the Oxo Alcohols segment declined in FY2025 and Q1FY2026 due to global pricing pressure.

Geographic Revenue Split

Primarily domestic (India) market given the company's status as one of only two domestic producers and the presence of anti-dumping duties on imports; exact percentage split is not disclosed.

Profitability Margins

Operating margins declined in FY2025 and Q1FY2026 due to narrowed spreads between product prices and feedstock costs. The company incurred a cash loss of INR 7.22 lakhs in FY2025 compared to no cash loss in FY2024.

EBITDA Margin

EBITDA margins declined in FY2025 and Q1FY2026 owing to global demand headwinds and oversupply; previously, margins had recovered starting Q2FY2024 after a sharp decline in FY2023.

Capital Expenditure

Not disclosed in available documents, though the company maintains a healthy capital structure with nil long-term debt as of March 31, 2025.

Credit Rating & Borrowing

Long-term rating of [ICRA]A- with a Negative outlook (revised from Stable on August 18, 2025) and Short-term rating of [ICRA]A2+. Total rated limits are INR 94.18 Cr with minimal working capital utilization.

⚙️ Operational Drivers

Raw Materials

Feedstock (Propylene) and Natural Gas represent the primary input costs for the Oxo Alcohol manufacturing process.

Capacity Expansion

Current installed capacity is 73,000 TPA for Oxo Alcohols. No specific expansion plans or timelines are disclosed in the provided documents.

Raw Material Costs

Profitability is highly sensitive to the spread between Oxo Alcohol prices and feedstock costs; margins declined in FY2025 as global oversupply reduced final product pricing while input costs remained pressured.

Manufacturing Efficiency

The company employs state-of-the-art 'Selector-30' technology from Davy Process Technology, UK, and maintains minimal working capital utilization, reflecting efficient operational management.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth by maintaining its domestic market share in the Oxo Alcohol duopoly and improving profitability through spread management. It leverages its strong liquidity (INR 362.3 Cr cash) and nil debt to navigate industry downturns.

Products & Services

Oxo Alcohols, specifically Normal Butanol (NBA) and 2-Ethyl Hexanol (2EH).

Brand Portfolio

The Andhra Petrochemicals Limited (APL).

Market Share & Ranking

One of only two producers of Oxo Alcohols in India, sharing a domestic duopoly with Bharat Petroleum Corporation Limited (BPCL).

Strategic Alliances

Promoted by The Andhra Sugars Limited (ASL) and Andhra Pradesh Industrial Development Corporation Limited (APIDC).

🌍 External Factors

Industry Trends

The Oxo Alcohol industry is currently facing a downturn with pricing pressure from global oversupply. However, the domestic market remains a duopoly, and APL is positioned to benefit when global spreads normalize.

Competitive Landscape

The primary domestic competitor is Bharat Petroleum Corporation Limited (BPCL).

Competitive Moat

The moat is based on a domestic duopoly with BPCL, trade protection through anti-dumping duties, and the use of proprietary 'Selector-30' technology, which are sustainable due to high entry barriers in petrochemicals.

Macro Economic Sensitivity

Highly sensitive to global chemical demand and industrial production cycles, which led to a margin decline in FY2025.

Consumer Behavior

Industrial demand for Oxo Alcohols is currently facing global headwinds, affecting the volume and pricing of APL's products.

Geopolitical Risks

Trade protection measures, such as anti-dumping duties, are critical to protecting the company's domestic market share from international competition.

⚖️ Regulatory & Governance

Industry Regulations

Operations comply with Indian Accounting Standards (Ind AS) and are influenced by anti-dumping duties (ADD) imposed by the government on imported Oxo Alcohols.

Environmental Compliance

The company maintains high safety standards, evidenced by awards from the National Safety Council.

Legal Contingencies

Pending litigations are disclosed in Note 2.36 of the financial statements; however, specific case values were not provided in the summary documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the duration of the current pricing pressure and demand headwinds in the global Oxo Alcohol market, which impacted FY2025 margins.

Geographic Concentration Risk

100% of manufacturing facilities are concentrated in Visakhapatnam, Andhra Pradesh.

Technology Obsolescence Risk

The company uses 'Selector-30' technology from Davy Process Technology, which is currently considered state-of-the-art for the industry.