Cochin Minerals - Cochin Minerals

📊 BSE: 513353 🏢 Specialty Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Synthetic Rutile accounts for approximately 90% of total sales; segment-specific growth percentages are not provided, but the company targets a scale of operations above INR 500 crore for rating upgrades.

Geographic Revenue Split

Exports to Japan account for approximately 70% of total revenue, primarily through long-term trading partners.

Profitability Margins

PBILDT margin was 11.00% in FY25, representing a decline from 13.17% in FY24 due to weakening global prices.

EBITDA Margin

11.00% PBILDT margin in FY25, reflecting a 2.17% year-on-year decline from 13.17% in FY24.

Credit Rating & Borrowing

CARE BBB; Stable for long-term facilities (INR 1.50 Cr) and CARE A3+ for short-term facilities (INR 132.00 Cr) as of August 2025.

⚙️ Operational Drivers

Raw Materials

Ilmenite is the primary raw material, with approximately 25-30% sourced domestically and the remainder imported.

Import Sources

Majority of raw materials are imported from international sources, with procurement arranged by Mitsui & Co. Ltd.

Key Suppliers

Indian Rare Earth Limited (IREL) supplies 25-30% of ilmenite requirement; Mitsui & Co. Ltd. manages the majority of imported raw material sourcing.

Capacity Expansion

Current installed capacity is 50,000 MTA of synthetic rutile, which was scaled up from an initial 10,000 MTA.

Raw Material Costs

Domestic ilmenite sourcing from IREL (25-30%) helps reduce overall procurement costs due to proximity to the Kerala manufacturing plant.

Manufacturing Efficiency

The plant utilizes indigenous technology to produce synthetic rutile and by-products, having scaled capacity by 400% since inception.

📈 Strategic Growth

Growth Strategy

The company aims to sustain margins through formula-driven pricing arrangements with key customers and leveraging 33-year long-standing relationships to ensure repeat business.

Products & Services

Synthetic Rutile, Ferric Chloride, and Ferrous Chloride.

Brand Portfolio

CMRL.

Market Share & Ranking

The company is one of the few Indian manufacturers in the synthetic rutile sector.

Strategic Alliances

Long-term strategic relationship with Mitsui & Co. Ltd. for both raw material supply and product distribution.

🌍 External Factors

Industry Trends

The industry is currently facing a downward trend in global synthetic rutile prices, which impacted margins in FY25 and continued into Q1 FY26.

Competitive Landscape

Niche market with few domestic competitors; the company is a significant player in the Indian synthetic rutile industry.

Competitive Moat

The moat is built on indigenous production technology and 33-year relationships with major Japanese trading houses, providing a durable competitive advantage.

Macro Economic Sensitivity

Highly sensitive to global synthetic rutile commodity prices and foreign exchange rate fluctuations due to the export-oriented business model.

Geopolitical Risks

Concentration of 70% of exports in Japan makes the company vulnerable to trade policy changes or economic shifts in the Japanese market.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Factories Act 1948, Environment Protection Act 1986, and Air/Water Pollution Control Acts due to the chemical nature of production.