ALKYLAMINE - Alkyl Amines

📊 NSE: ALKYLAMINE 🏢 Chemicals 📅 Last Updated: 12/13/2025 18:09

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Specialty Chemicals, which generated a total income of INR 1,601.62 Cr in FY25, representing a 10% growth compared to INR 1,455.66 Cr in FY24. Domestic sales grew 9.1% to INR 1,391.47 Cr from INR 1,275.65 Cr YoY.

Geographic Revenue Split

Domestic sales contributed 86.8% (INR 1,391.47 Cr) of total income in FY25. Export sales contributed 21.4% (INR 343.09 Cr) of total income in FY25, up 7.9% from INR 317.79 Cr in FY24. Exports are expected to increase gradually over the medium term.

Profitability Margins

Profitability has seen compression; PAT margins declined from 13.48% in FY23 to 10.23% in FY24. Profit Before Tax (PBT) for FY25 was INR 248.64 Cr, a 22.8% increase from INR 202.47 Cr in FY24, though margins remain sensitive to raw material price volatility.

EBITDA Margin

Operating margins remained above 20% in FY23 despite raw material volatility. However, credit rating sensitivities suggest a downward risk if margins drop below 17-18% on a sustained basis due to loss of market share or inability to pass on input costs.

Capital Expenditure

The company recently completed a major capital expenditure of INR 400 Cr for a new Ethyl Amines plant at the Kurkumbh site in Maharashtra, which is now fully operational. Further investments in various projects are expected to add to the top-line in FY26.

Credit Rating & Borrowing

The company holds a 'CRISIL AA-/Stable' long-term rating and 'CRISIL A1+' short-term rating (upgraded in May 2023). It maintains a strong financial risk profile with nil long-term debt and low bank limit utilization of approximately 29%.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Alcohols (Ethanol and Methanol), Ammonia, and Acetic Acid. These inputs are highly volatile; Ethanol is linked to the sugar cycle, while Methanol is driven by crude oil prices and global demand-supply dynamics.

Import Sources

Raw materials are sourced both domestically and through imports. Methanol prices are specifically noted to be driven by international market dynamics, and a portion of raw material requirements is met through imports, exposing the company to forex risks.

Key Suppliers

Not specifically named in the documents, but the company relies on suppliers from the sugar industry for Ethanol and international commodity markets for Methanol and Ammonia.

Capacity Expansion

Current saleable capacity is approximately 1.5 lakh tons (representing 75% of total production). A new Ethyl Amines plant (INR 400 Cr investment) is fully operational, and a 5,000-ton capacity for Diethyl Ketone (DEK) was previously commercialized.

Raw Material Costs

Raw material costs are a significant portion of the cost structure. Ammonia prices have recently softened, but the company operates in an oligopolistic environment where passing on price increases can be difficult, making margins susceptible to unfavorable price movements.

Manufacturing Efficiency

The company focuses on ramp-ups in enhanced capacities and sustained operating efficiency backed by volume growth. Approximately 25% of production is consumed internally for derivative manufacturing.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be driven by the ramp-up of the new INR 400 Cr Ethyl Amines plant, increasing the contribution of the export segment (target for gradual increase), and expanding the product range in the specialty chemicals and amine derivatives segments.

Products & Services

Aliphatic amines (Ethylamine, Methylamine), amine derivatives, specialty chemicals, and Diethyl Ketone (DEK). These are sold to the pharmaceutical, agro-chemical, water treatment, and rubber chemical industries.

Brand Portfolio

Alkyl Amines Chemicals Limited (AACL).

New Products/Services

The company is expanding its product range and recently commercialized Diethyl Ketone (DEK) with a 5,000-ton capacity, although current utilization is under pressure due to agrochemical market conditions.

Market Expansion

The company is focusing on increasing its export footprint (currently 21.4% of revenue) and leveraging its leadership position in the domestic oligopolistic amines market to capture growing demand in Asia.

Market Share & Ranking

AACL is a leading player with a significant and dominant market share in the Indian aliphatic amines industry, which is characterized as oligopolistic.

Strategic Alliances

The company was promoted by Mr. Yogesh Kothari and family in association with DSP Financial Consultants Ltd.

🌍 External Factors

Industry Trends

The chemical industry is shifting focus toward Asia. While the current environment is complex with subdued pricing, the long-term trend is growing demand for amines in pharma and agro-chemicals, with the industry evolving toward more complex supply chains.

Competitive Landscape

The industry is oligopolistic with intense competition from both local and international producers. AACL is one of the top players in India.

Competitive Moat

The moat is built on a leadership position in an oligopolistic market, high entry barriers due to complex manufacturing, and a strong financial profile with nil long-term debt, making it highly sustainable.

Macro Economic Sensitivity

Highly sensitive to commodity price cycles (sugar and crude oil) and inflationary pressures. A sustained operating margin below 17% is a key monitorable for credit rating downgrades.

Consumer Behavior

Demand is driven by end-user industries like pharmaceuticals and agro-chemicals; recent pressure in the agro-chemical sector has led to lower utilization for specific products like DEK.

Geopolitical Risks

Recent performance in H1 FY26 was described as 'subdued' due to geopolitical pressures and actions by the US government affecting global demand and pricing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to statutory regulations regarding health, safety, and environment. The company underwent a secretarial audit for FY25 to ensure compliance with the Companies Act and SEBI Listing Regulations.

Environmental Compliance

The company adheres to 'Responsible Care' standards and monitors manufacturing sites for environmental protection and operational safety in line with statutory regulations.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (Ammonia, Methanol, Ethanol) and forex rates are the primary uncertainties. A decline in operating margins below 18% could trigger a rating downgrade.