Amal - Amal

📊 BSE: 506597 🏢 Specialty Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Bulk chemicals (Sulphuric acid, Oleum, etc.) grew 57.18% YoY from INR 86.09 Cr in FY24 to INR 135.32 Cr in FY25.

Geographic Revenue Split

Primarily domestic sales in Gujarat (Ankleshwar) due to proximity to parent Atul Ltd; specific percentage split not disclosed in available documents.

Profitability Margins

Operating margin (PBILDT) improved from 17.85% in FY24 to 32.26% in FY25. Net profit margin (PAT) surged from 1.97% to 21.64% due to lower raw material costs and higher capacity utilization.

EBITDA Margin

32.26% in FY25, a significant increase from 17.85% in FY24, driven by the stabilization of the ASCL plant and favorable sulphur prices.

Capital Expenditure

Historical capex for FY25 was INR 3.52 Cr, down 56.6% from INR 8.12 Cr in FY24. No large debt-funded capex is planned for the near term.

Credit Rating & Borrowing

CARE A+; Stable (Reaffirmed in Sept 2025). The company is debt-free as of March 31, 2025, after repaying INR 23.71 Cr of borrowings.

⚙️ Operational Drivers

Raw Materials

Sulphur is the primary raw material, accounting for over 50% of the total cost structure.

Capacity Expansion

Current installed capacity is 440 TPD (increased from 140 TPD in Q2FY23). No further expansion timeline is specified.

Raw Material Costs

Raw material costs are highly volatile; sulphur prices peaked in May 2022 and stabilized in 2024-25, leading to improved margins.

Manufacturing Efficiency

Capacity utilization is expected to remain healthy in FY26 following the ramp-up of the ASCL subsidiary.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Achieving growth through the full capacity utilization of the 440 TPD plant and leveraging the strategic relationship with Atul Ltd for committed off-take.

Products & Services

Sulphuric acid, Oleum, Sulphur dioxide, and Sulphur trioxide.

Brand Portfolio

Amal.

Strategic Alliances

Subsidiary of Atul Ltd (49.86% stake), providing managerial and operational support.

🌍 External Factors

Industry Trends

The commodity chemicals sector is seeing steady demand from pharma and fertilizers; Amal is positioned as a key supplier for its parent's integrated complex.

Competitive Landscape

Competes with other bulk chemical manufacturers in the Gujarat industrial belt.

Competitive Moat

Sustainable moat derived from strong parentage (Atul Ltd) and strategic location, which reduces logistics costs and ensures a captive-like customer base.