TGV Sraac - TGV Sraac

📊 BSE: 507753 🏢 Commodity Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 13.1% from INR 1,545.96 Cr in FY24 to INR 1,749.04 Cr in FY25. H1FY26 revenue reached INR 990.88 Cr, a 12% YoY increase compared to H1FY25.

Geographic Revenue Split

Domestic sales constitute the majority of revenue; however, exports grew 27.1% from INR 72.90 Cr in FY24 to INR 92.68 Cr in FY25.

Profitability Margins

Net Profit Ratio improved 33.76% YoY, rising from 3.96% in FY24 to 5.30% in FY25. Return on Equity (RoE) increased from 5.67% to 8.10%, a 42.89% favorable variance.

EBITDA Margin

PBILDT margin improved significantly to 18.92% in H1FY26 from 13.70% in H1FY25. FY24 PBILDT was INR 134.39 Cr (8.69% margin) compared to INR 539.45 Cr in FY23.

Capital Expenditure

The company has planned a large-scale capex of INR 1,044 Cr over FY26-FY27. In FY25, INR 63 Cr was spent on caustic soda and chloromethane capacity expansions.

Credit Rating & Borrowing

CARE A; Stable (Long-term) and CARE A1 (Short-term) reaffirmed in January 2026. Total debt stood at INR 305 Cr as of September 30, 2025, with a Net Debt/PBILDT of 0.81x.

⚙️ Operational Drivers

Raw Materials

Industrial salt, potassium chloride, palm fatty acids, and castor oil, which collectively represent 35% to 45% of the total production cost.

Import Sources

Imported raw materials and capital goods totaled INR 99.59 Cr in FY25, a decrease from INR 247.31 Cr in FY24; sources include global markets for potassium chloride.

Key Suppliers

Key suppliers include group entities such as TGV Industries Private Limited (INR 358.55 Cr in purchases) and Priyadarshini Salt Works Private Limited (INR 7.11 Cr).

Capacity Expansion

Current installed capacity includes Caustic Soda (3,32,150 MTPA), Caustic Potash (49,500 MTPA), and Chloromethane (1,39,914 MTPA). Expanding caustic soda by 450 TPD by March 2027.

Raw Material Costs

Raw material costs account for 35-45% of total costs. The company utilizes group synergies to procure salt and other inputs to mitigate price volatility.

Manufacturing Efficiency

Maintained high capacity utilization for key products during FY24; manufacturing plants are ISO 9002, ISO 14001, and OHSAS 18001 certified.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but the company serves over 200 clients across diverse industrial sectors.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be driven by an INR 1,044 Cr expansion of caustic soda capacity by 450 TPD by March 2027. The strategy includes increasing renewable energy capacity to lower the 50% power cost burden and leveraging integrated operations to maintain 18-19% PBILDT margins.

Products & Services

Caustic soda, caustic potash, sodium hypochlorite, chlorine, hydrochloric acid, hydrogen gas, chloromethane products, castor oil derivatives, fatty acids, and toilet soaps.

Brand Portfolio

TGV Group; specific consumer brands for toilet soaps and healthcare products are managed under the flagship TGV SRAAC entity.

New Products/Services

Expanded chloromethane and caustic soda capacities are expected to be the primary contributors to the projected 10% YoY revenue growth in FY26.

Market Expansion

Targeting increased market share in Southern India and expanding the export portfolio, which grew by 27% in the most recent fiscal year.

Market Share & Ranking

Identified as a notable player in the Southern India chloro-alkali industry with a track record of ~40 years.

Strategic Alliances

Strong intra-group alliances with Sree Rayalaseema Hi-Strength Hypo Limited (Sales: INR 95.33 Cr) and Roopa Industries Limited.

🌍 External Factors

Industry Trends

The chloro-alkali industry is evolving with a focus on reducing carbon footprints. TGV SRAAC is shifting toward renewable energy to mitigate high power costs and regulatory pressure.

Competitive Landscape

Operates in a competitive commodity chemical market; key risks include 'heavy dumping' of caustic soda by larger global players.

Competitive Moat

Durable competitive advantage through 40 years of experience, a 120.50 MW captive power plant, and highly integrated manufacturing that protects against cyclicality.

Macro Economic Sensitivity

Highly sensitive to global chemical demand-supply cycles and industrial GDP growth, which directly affect ECU realizations.

Consumer Behavior

Demand is driven by industrial shifts in the textile, alumina, and soap industries, which are currently showing stable demand for chlor-alkali products.