💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 was INR 186.26 Cr. For FY25, revenue was INR 302.05 Cr, representing a decline of 12.77% compared to INR 346.27 Cr in FY24. Segment-specific growth percentages are not disclosed in the available documents.

Profitability Margins

Operating Margin Ratio was 12% in FY25, down from 16% in FY24. Net Profit Margin (PBT) was -5.20% in FY25 compared to 1.41% in FY24. H1 FY26 recorded a PBT loss of INR 0.37 Cr.

EBITDA Margin

Operating margin ratio stood at 12% for FY25, a 25% decrease from the 16% margin achieved in FY24. Historical EBITDA margin in Q1 FY20 was 8.3%.

Capital Expenditure

Non-current assets increased by INR 9.44 Cr during H1 FY26, rising from INR 280.89 Cr in March 2025 to INR 290.33 Cr in September 2025.

Credit Rating & Borrowing

Rating sensitivity factors include maintaining a PBILDT margin above 15% and ROCE above 15% for a positive rating action. A sustained margin below 8% or gearing beyond 0.75x would lead to a negative rating action.

⚙️ Operational Drivers

Raw Materials

Chemical intermediates for Pigment Green 7 and Precipitated Silica. Specific chemical names and their percentage of total cost are not disclosed.

Capacity Expansion

Historical volume was 2,643 MT in Q1 FY20. Current installed capacity and specific expansion timelines are not disclosed in the provided documents.

Raw Material Costs

Raw material costs were INR 44.0 Cr in Q1 FY20, representing approximately 62.7% of revenue. Management notes volatility in raw material prices as a key risk to PBILDT margins.

Manufacturing Efficiency

Partial stoppage of plant operations in FY25 resulted in minimum operating margins and an inability to cover fixed overheads, leading to a negative bottom line.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth is driven by innovation in products and processes, focusing on Pigment Green 7 and Precipitated Silica. The company emphasizes human resource development through quarterly motivational programs and knowledge sharing to improve work quality and operational conclusions.

Products & Services

Pigment Green 7 (used in inks, plastics, and coatings) and Precipitated Silica (used in rubber, tires, and toothpaste).

Brand Portfolio

Aksharchem, Asaflow (Pigment Green 7), and Aksil (Precipitated Silica).

🌍 External Factors

Industry Trends

The industry experienced prolonged sluggishness in demand, though management noted signs of improvement in the latter half of FY25. The sector is evolving through innovation in chemical processes.

Competitive Landscape

Key competitors are not named, but the landscape is characterized by price volatility and demand fluctuations from end-user industries.

Competitive Moat

Moat is based on trademarked brands (Asaflow, Aksil) and innovation-led product differentiation in the Pigment Green 7 and Precipitated Silica segments.

Macro Economic Sensitivity

Demand is highly sensitive to the broader economy; a slowdown led to a reduction in demand from end-user industries, impacting volumes by 12.6% in historical periods.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI Listing Regulations and Indian Accounting Standards (IND AS 34). Specific manufacturing or pollution norms are not detailed.

Taxation Policy Impact

The company recorded a deferred tax credit of INR 3.12 Cr in FY25. H1 FY26 tax expense was INR 0.29 Cr.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and foreign exchange rates are the primary uncertainties, with the potential to swing PBILDT margins by over 7% based on historical rating sensitivities.

Credit & Counterparty Risk

Trade receivables increased by 18.7% to INR 48.25 Cr in H1 FY26 from INR 40.64 Cr in March 2025, indicating a potential increase in credit exposure.