AMBANIORGO - Ambani Orgochem

📊 NSE: AMBANIORGO 🏢 Chemicals 📅 Last Updated: 12/13/2025 18:14

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 33.51% YoY to INR 109.15 Cr in H1 FY26, primarily driven by the stabilization of the Dahej unit and an increased share of value-added Salicylates. Specific percentage splits by segment are not disclosed.

Geographic Revenue Split

The company exports to Nigeria and Vietnam, but the specific percentage contribution from each region is not disclosed in available documents.

Profitability Margins

Net Profit turned positive at INR 19.07 Lakhs in H1 FY26 compared to a loss of INR 178.48 Lakhs in H1 FY25. Net profit margin remains thin at approximately 0.17%.

EBITDA Margin

EBITDA Margin improved to 7.16% in H1 FY26 from 5.46% in H1 FY25, an increase of 170 bps. EBITDA surged 76.77% YoY to INR 7.92 Cr due to better product-mix and supply chain efficiencies.

Capital Expenditure

The company undertook a capital expenditure of INR 18 Cr for setting up Phase 2 of the new facility at Dahej, Gujarat.

Credit Rating & Borrowing

Long-term rating is IVR BB+/Stable and short-term rating is IVR A4+. The outlook was revised from Positive to Stable due to delays in commercial operations at the Dahej project.

⚙️ Operational Drivers

Raw Materials

The company processes specialty chemicals including Organic Peroxide, Salicylic Acid, and Salicylic Derivatives. Specific raw material names and their cost percentages are not disclosed.

Capacity Expansion

Current combined capacity at Tarapur is 15,840 MTPA. The company expanded production capacity to 24,000 tons by 2019 and is currently implementing Dahej Phase 2 expansion.

Raw Material Costs

Raw material costs are not explicitly stated as a percentage of revenue, but the company is focusing on supply chain efficiency to control operating costs.

Manufacturing Efficiency

Manufacturing efficiency is being targeted through supply chain optimization and stabilizing new units to improve EBITDA margins by 170 bps.

📈 Strategic Growth

Expected Growth Rate

33.51%

Growth Strategy

Growth will be achieved by stabilizing the Dahej unit, increasing the share of value-added Salicylates, and focusing on supply chain efficiency. The company expects meaningful improvement in margins over the next few quarters as these efforts unfold.

Products & Services

Water-based specialty chemicals, Organic Peroxide, Salicylic Acid, Salicylic Derivatives, acrylic emulsions, acrylic polymers, thickeners, and paint driers.

Brand Portfolio

Ambani Orgochem Limited (formerly Ambani Organics Limited).

New Products/Services

Value-added Salicylates and Salicylic Derivatives are the primary new focus areas for margin expansion.

Market Expansion

Expansion is focused on the Dahej facility in Gujarat and increasing export presence in markets like Nigeria and Vietnam.

🌍 External Factors

Industry Trends

The specialty chemicals industry is growing but remains highly competitive. Future trends involve a shift toward value-added derivatives and sustainable growth through supply chain efficiency.

Competitive Landscape

Faces intense competition from numerous players in the specialty chemicals sector, which limits pricing power.

Competitive Moat

The company's moat is built on 30+ years of experience, experienced promoters (Mr. Rakesh Shah), and a diversified product portfolio serving critical industries like Pharmaceuticals and Home Care.