CHEMBOND - Chembond Chem.
📢 Recent Corporate Announcements
Chembond Material Technologies has issued a formal notice to shareholders regarding the mandatory transfer of unclaimed dividends and corresponding equity shares to the Investor Education and Protection Fund (IEPF) Authority. This action is in compliance with Section 124 of the Companies Act, 2013, which mandates the transfer of dividends unpaid for seven consecutive years. Physical letters were dispatched to the affected shareholders on March 12, 2026. This is a standard regulatory procedure and does not impact the company's financial health or operations.
- Notification sent regarding the transfer of unclaimed dividends and equity shares to the IEPF Authority.
- Action taken under Section 124 of the Companies Act, 2013 and SEBI (LODR) Regulations.
- Physical letters dispatched to concerned shareholders on March 12, 2026.
- Applies to dividends and shares where payouts have remained unclaimed for seven consecutive years.
Chembond Material Technologies reported a consolidated revenue of ₹62.9 crore for Q3 FY26, an 18.5% increase from the restated ₹53 crore in the previous year. However, net profit for the quarter declined sharply by 51% to ₹1.59 crore, largely due to a one-time exceptional charge of ₹1.8 crore related to new labour code gratuity requirements. While the top-line shows healthy growth, margins were pressured by higher raw material costs and increased tax expenses. The nine-month performance also shows a profit decline despite higher revenues.
- Consolidated Revenue from operations grew 18.5% YoY to ₹6,289.52 Lakhs.
- Net Profit fell 50.9% YoY to ₹158.86 Lakhs, down from ₹323.52 Lakhs in the restated Q3 FY25.
- Exceptional item of ₹179.61 Lakhs recorded due to incremental gratuity impact from new Labour Codes.
- Cost of materials consumed increased significantly to ₹3,738.10 Lakhs from ₹2,867.12 Lakhs YoY.
- Nine-month revenue stands at ₹17,832.03 Lakhs, up from ₹14,909.02 Lakhs in the previous year.
Chembond Material Technologies has approved the grant of 34,238 stock options to eligible employees under its 2025 Employee Stock Option Plan. The grant is divided into two tranches with exercise prices set at ₹164.00 and ₹115.00 per share respectively. Each option is convertible into one equity share of face value ₹5, with a vesting period extending up to five years. This move is aimed at retaining talent and aligning employee interests with long-term shareholder value.
- Grant of 34,238 stock options to employees of the company and its subsidiaries.
- Exercise prices fixed at ₹164.00 for 23,688 options and ₹115.00 for 10,550 options.
- Each option represents one equity share with a face value of ₹5.
- Vesting period of up to 5 years with a minimum 1-year cliff from the grant date.
Chembond Material Technologies Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. For the quarter ended December 31, 2025, the company confirmed that all share certificates received for dematerialization were processed and cancelled. The Registrar and Transfer Agent, MUFG Intime India Private Limited, verified that the depository names were substituted in the records within the mandated 15-day period. This is a standard administrative filing ensuring the integrity of electronic shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Confirmation that dematerialized shares are listed on both BSE and NSE
- Share certificates were mutilated and cancelled within 15 days of receipt as per SEBI norms
- MUFG Intime India Private Limited acted as the Registrar and Transfer Agent (RTA) for verification
Sameer V. Shah, a member of the promoter group of Chembond Material Technologies Limited, has reported an acquisition of shares under Regulation 10(6) of the SEBI (SAST) Regulations, 2011. This specific regulation pertains to acquisitions that are exempt from the obligation of making an open offer, typically involving inter-se transfers among promoters or family members. The disclosure ensures transparency regarding individual shareholding changes within the promoter group. As an exempt transaction, it does not represent a fresh market purchase or a change in the aggregate promoter holding.
- Disclosure filed under Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
- Acquisition made by promoter Sameer V. Shah relying on exemptions provided in Regulation 10.
- The transaction is exempt from the mandatory open offer requirements usually triggered by share acquisitions.
- The report was digitally signed and submitted on December 30, 2025.
- Indicates internal restructuring or transfer of shares within the existing promoter group.
Chembond Material Technologies Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This mandatory regulatory step is taken ahead of the declaration of financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are officially announced to the exchanges. The specific date for the board meeting to approve these results will be shared by the company in due course.
- Trading window closure begins on January 1, 2026, for all designated persons and their relatives.
- The closure is in preparation for the Q3 and nine-month financial results ending December 31, 2025.
- Trading restrictions will be lifted 48 hours after the standalone and consolidated results are declared.
- The company is complying with SEBI (Prohibition of Insider Trading) Regulations, 2015.
Sameer Vinod Shah, a promoter of Chembond Material Technologies, has announced the acquisition of 19,27,024 equity shares from another promoter, Nirmal Vinod Shah. This transaction represents a 14.33% stake in the company and will be executed as an inter-se transfer by way of a gift. The proposed date for this off-market transaction is December 26, 2025. As this is a gift between promoters, there is no cash consideration involved and the overall promoter group holding remains unchanged.
- Proposed acquisition of 19,27,024 equity shares representing a 14.33% stake in the company.
- Transaction is an inter-se transfer between promoters Sameer Vinod Shah and Nirmal Vinod Shah.
- The transfer will be executed as a gift with no financial consideration involved.
- The proposed date for the off-market transaction is scheduled for December 26, 2025.
- The move is intended for the reorganization and realignment of shareholding within the promoter group.
Financial Performance
Revenue Growth by Segment
Consolidated revenue from continuing operations grew 13% YoY to INR 201.30 Cr in FY25 from INR 178.24 Cr in FY24. However, total consolidated revenue including demerged entities fell 56.4% from INR 461.99 Cr in FY24 to INR 201.30 Cr in FY25 following the demerger of the Water and Construction Chemical businesses.
Geographic Revenue Split
Not disclosed in available documents; however, the group operates subsidiaries in Malaysia and Thailand, indicating international revenue streams alongside domestic Indian operations.
Profitability Margins
Operating profitability on continuing business improved to 6.75% in FY25 from 3.5% in FY24 due to better cost absorption. Reported PAT margin for FY25 stood at 8.72% compared to 6.27% (restated) in FY24, driven by a 57% increase in PAT to INR 17.56 Cr.
EBITDA Margin
Operating margins have historically ranged between 5-8% (FY20-FY23), peaking at 11.06% in 9MFY24. The current EBITDA margin of 6.75% reflects a recovery from the 3.5% low in FY24, though absolute EBITDA remains impacted by the reduced scale of operations post-demerger.
Capital Expenditure
The group has no major capex plans over the medium term as of March 2025. Historical capital work-in-progress was INR 7.51 Cr as of March 31, 2025, which reduced to INR 1.47 Cr by September 30, 2025, suggesting completion of minor projects.
Credit Rating & Borrowing
CRISIL downgraded the long-term rating to 'CRISIL BBB/Stable' from 'CRISIL BBB+/Negative' in 2025 due to the weakened business risk profile post-demerger. Interest coverage is exceptionally healthy, expected to be above 40 times in FY25.
Operational Drivers
Raw Materials
Specific chemical names are not listed, but 'Cost of Materials Consumed' represents 57.7% of total revenue, amounting to INR 116.19 Cr in FY25.
Key Suppliers
Not disclosed in available documents; however, the company maintains long-term relationships with key suppliers to mitigate supply chain volatility.
Capacity Expansion
Current installed capacity is not specified in MT. The company focuses on 'asset-light' growth over the medium term with no major planned expansions, relying on existing facilities in Navi Mumbai and other locations.
Raw Material Costs
Raw material costs stood at INR 116.19 Cr in FY25, a 3.3% increase from INR 112.47 Cr in FY24. As a percentage of revenue, material costs decreased from 63.1% to 57.7%, contributing to the margin expansion.
Manufacturing Efficiency
The company maintains a 30-day raw material buffer. Efficiency is driven by the absorption of fixed costs over a higher revenue base in the continuing business, which improved margins by 325 basis points YoY.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
Growth is targeted through the consolidation of the Material Technologies segment via the amalgamation of Phiroze Sethna Pvt Ltd and Gramos Chemicals India. The company aims for net cash accruals above INR 20 Cr (a ~33% increase from the current INR 15 Cr expectation) to trigger a credit rating upgrade.
Products & Services
Specialty chemicals including metal-treatment chemicals, industrial enzymes, animal health products, and surface-treatment chemicals.
Brand Portfolio
Chembond, Phiroze Sethna, Gramos Chemicals.
New Products/Services
The company is focusing on high-performance coatings and sealants following the merger of Phiroze Sethna and Gramos, though specific revenue contribution % for new launches is not disclosed.
Market Expansion
The group maintains a presence in Malaysia and Thailand through step-down subsidiaries to capture Southeast Asian demand for water and specialty chemicals.
Strategic Alliances
Joint ventures and subsidiaries include Chembond-Calvatis Industrial Hygiene Systems Limited and Chembond Biosciences Limited.
External Factors
Industry Trends
The specialty chemicals industry is evolving toward consolidation. Chembond is positioning itself by demerging non-core water/construction businesses to focus on material technologies and animal health, which offer different margin profiles.
Competitive Landscape
Intense competition from both large organized players and small unorganized units due to low gestation periods for new plants.
Competitive Moat
The primary moat is the 40+ years of promoter experience and established customer relationships. However, this moat is narrow due to low capital and technology requirements in the industry, allowing easy entry for new competitors.
Macro Economic Sensitivity
Highly sensitive to industrial production growth in India, particularly in sectors requiring metal and surface treatment.
Consumer Behavior
Industrial customers are increasingly seeking integrated 'material technology' solutions rather than standalone chemical products, prompting the company's recent structural reorganization.
Geopolitical Risks
Exposure to Southeast Asian markets (Malaysia, Thailand) subjects the group to regional regulatory and economic shifts.
Regulatory & Governance
Industry Regulations
Operations are subject to NCLT regulations regarding the 2025 scheme of demerger and amalgamation, and standard chemical manufacturing safety and environmental norms.
Taxation Policy Impact
The group continues with the existing tax structure under the Income Tax Act, 1961. Income tax assets (net) stood at INR 4.57 Cr as of September 2025.
Legal Contingencies
The demerger and amalgamation scheme received NCLT approval in April 2025 and was pending ROC filing as of the latest credit report.
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability to scale the 'continuing' business to offset the 56% revenue loss from demerged operations. Operating margins falling below 5% is identified as a key downward rating trigger.
Geographic Concentration Risk
Significant concentration in India, with secondary exposure to Malaysia and Thailand.
Third Party Dependencies
Moderate dependency on raw material suppliers; however, 'easy availability' of materials reduces the risk of single-source failure.
Technology Obsolescence Risk
Low risk due to the nature of specialty chemicals, but the company is implementing an ESOP 2025 plan to retain technical talent.
Credit & Counterparty Risk
Receivables stood at INR 49.60 Cr as of September 2025. The group maintains an ECL (Expected Credit Loss) provision on debtors, which was reduced by INR 0.20 Cr in H1 FY26, indicating stable collection quality.