BODALCHEM - Bodal Chemicals

📊 NSE: BODALCHEM 🏢 Dyes And Pigments 📅 Last Updated: 12/13/2025 19:38

💰 Financial Performance

Revenue Growth by Segment

The Chemical Business is the only reportable segment. Standalone revenue for Q2 FY26 was INR 471.96 Cr, representing a 6.1% QoQ growth from INR 444.85 Cr in Q1 FY26. Consolidated revenue for Q2 FY26 was INR 480.45 Cr, up 5.8% QoQ from INR 454.20 Cr.

Geographic Revenue Split

Exports accounted for approximately 24% of total revenue in FY25, with the remaining 76% derived from domestic operations in India.

Profitability Margins

Standalone PBT margin for Q2 FY26 was 1.16% (INR 5.46 Cr), a significant decline from 3.10% (INR 13.81 Cr) in Q1 FY26. Net profitability was impacted by higher raw material consumption costs which rose to 57.0% of revenue in Q2 FY26 compared to 51.7% in Q1 FY26.

EBITDA Margin

Standalone EBITDA margin for Q2 FY26 was approximately 9.15% (INR 43.18 Cr), declining from 11.68% (INR 51.96 Cr) in Q1 FY26. The decline is primarily attributed to a 19.3% QoQ increase in raw material and inventory costs.

Capital Expenditure

Total assets as of September 30, 2025, were INR 2,312.85 Cr. Specific historical and planned CAPEX figures in INR Cr were not disclosed in the provided documents.

Credit Rating & Borrowing

Infomerics assigned a Long Term rating of IVR A-/Stable and a Short Term rating of IVR A2+ in December 2025. Proposed Commercial Paper (CP) of INR 50.00 Cr is expected to have interest rates between 7.5% and 9.5%.

⚙️ Operational Drivers

Raw Materials

Raw materials include crude oil derivatives and other chemical inputs. Cost of materials consumed and inventory changes represented 57.0% of standalone revenue (INR 269.24 Cr) in Q2 FY26.

Import Sources

Not disclosed in available documents, although the company utilizes imports to facilitate natural hedging against export revenue.

Capacity Expansion

Current installed capacity and specific planned expansion units in MT were not disclosed in the provided documents.

Raw Material Costs

Raw material costs (including inventory changes) were INR 269.24 Cr in Q2 FY26, representing 57.0% of revenue. This reflects a 19.3% increase from INR 225.70 Cr in Q1 FY26, driven by global crude oil trends.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is pursued through backward and forward integration in the chemical business and international expansion via 100% owned subsidiaries in Indonesia, China (Shijiazhuang), Turkey (Sener Boya), and Bangladesh (Bodal Bangla).

Products & Services

Dyes, Dye Intermediates, and Basic Chemicals.

Brand Portfolio

Bodal Chemicals.

Market Expansion

Expansion plans focus on strengthening the presence in international markets through established trading and manufacturing subsidiaries in Indonesia, China, and Turkey.

🌍 External Factors

Industry Trends

The chemical industry is currently influenced by global crude oil trends and shifting supply-demand dynamics. The industry is evolving towards integrated manufacturing models to ensure supply chain resilience and environmental compliance.

Competitive Landscape

Operates in the competitive chemical manufacturing sector; key competitors were not specifically named in the documents.

Competitive Moat

The company's moat is built on its integrated business model (backward and forward integration), which provides cost leadership and reduces dependency on external suppliers for intermediates. This is sustainable due to the high capital intensity and regulatory hurdles for new entrants.

Macro Economic Sensitivity

Highly sensitive to global crude oil price fluctuations and international trade policies affecting the chemical sector.

Geopolitical Risks

Exposure to trade barriers and regulatory shifts in key export markets and subsidiary locations including China and Turkey.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent pollution control norms and environmental safety standards mandated for chemical manufacturing in India.

Environmental Compliance

BCL is exposed to environmental and regulatory compliance risks; any tightening of pollution control norms could adversely impact operations and reputation.