CHEMBONDCH - Chembond Chemic.
📢 Recent Corporate Announcements
Chembond Chemicals reported a robust sequential performance for Q3 FY26, with revenue increasing 18.2% QoQ to ₹86.35 crore. On a YoY basis, revenue grew 15.3%, though net profit saw a slight dip of 2.6% to ₹9.71 crore due to increased operational costs. The 9M FY26 performance remains stable with a 4.3% YoY growth in net profit to ₹23.17 crore. The company also completed the sale of its 40% stake in associate Rewasoft Solutions during the quarter.
- Revenue from operations grew 15.3% YoY to ₹8,634.57 lakhs in Q3 FY26.
- Net profit showed a strong sequential recovery of 35% QoQ, reaching ₹971.17 lakhs.
- Total income for the nine-month period ended Dec 2025 rose to ₹22,891.52 lakhs.
- Employee expenses increased significantly to ₹1,613.61 lakhs from ₹1,240.71 lakhs YoY.
- Divested 40% stake in Rewasoft Solutions Private Limited effective December 31, 2025.
Chembond Chemicals Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by MUFG Intime India Private Limited, confirms the processing of dematerialization requests for the quarter ended December 31, 2025. This is a standard administrative filing required by all listed companies in India to ensure share registry accuracy. The filing indicates that the company is in compliance with depository participant regulations.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited
- Confirms adherence to SEBI (Depositories and Participants) Regulations, 2018
- Filing dated January 8, 2026, following the end of the third fiscal quarter
Chembond Chemicals' subsidiary, Chembond Water Technologies Limited, has divested its entire 40% stake in Rewasoft Solutions Private Limited. The transaction involved the sale of 20,000 equity shares for a total consideration of ₹2,00,000. Rewasoft was a step-down associate company that contributed a negligible 0.026% (₹4.60 Lakhs) to the group's net worth in FY 2024-25. The company has confirmed that there will be no significant financial impact following this discontinuation.
- Divested 100% of its holding in step-down associate Rewasoft Solutions Private Limited.
- The sale involved 20,000 equity shares representing a 40% stake in the associate company.
- Total cash consideration received for the transaction is ₹2,00,000.
- Rewasoft's contribution to the consolidated net worth was minimal at ₹4.60 Lakhs (0.026%).
- The buyer, Mr. Mohit S. Shah, is not part of the promoter group of Chembond Chemicals.
Mr. Nirmal V. Shah, Promoter and Managing Director of Chembond Chemicals, has acquired 29,39,017 equity shares, representing a 10.93% stake, from Mr. Sameer V. Shah. The transaction was completed on December 29, 2025, through an off-market gift as part of an internal reorganization of the promoter group. Following this transfer, Nirmal V. Shah's individual holding has increased from 15.03% to 25.96%, while Sameer V. Shah's stake has reduced to 1.44%. As this is an inter-se transfer within the promoter group, the total promoter shareholding remains unchanged.
- Transfer of 29,39,017 equity shares representing 10.93% of the total share capital
- Acquisition by MD Nirmal V. Shah from Director Sameer V. Shah via off-market gift
- Nirmal V. Shah's individual stake increased from 15.03% to 25.96%
- Transaction executed under SEBI (SAST) Regulation 10(1)(a)(i) for promoter realignment
- No cash consideration involved in the transaction as it was a gift
Chembond Chemicals Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This routine regulatory action is taken in compliance with SEBI (Prohibition of Insider Trading) Regulations ahead of the Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared. The specific date for the board meeting to approve these results is yet to be announced.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to the unaudited financial results for the quarter and nine months ended December 31, 2025
- Window to reopen 48 hours after the declaration of standalone and consolidated financial results
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
Financial Performance
Revenue Growth by Segment
H1 FY26 consolidated revenue was INR 138.40 Cr, a marginal decline of 0.7% YoY from INR 139.40 Cr. Segment performance: Water Technologies grew 5% against budget (contributing 87% of revenue), Construction Chemicals declined 6% YoY (7% share), Distribution fell 30% YoY (6% share) due to structural changes, and Cleaning & Hygiene grew 3% YoY (1% share).
Geographic Revenue Split
The company operates a Pan-India sales and customer service footprint with 3 manufacturing locations in Himachal Pradesh, Gujarat, and Tamil Nadu. It also has international presence through step-down subsidiaries in Malaysia and Thailand, though specific % splits per region are not disclosed.
Profitability Margins
PAT margin for H1 FY26 stood at 9.7%, an improvement of 93 bps from 8.8% in H1 FY25. Standalone Net Profit Margin for FY25 was 10.60%. The improvement is attributed to lower raw material costs and the introduction of higher-margin product technologies.
EBITDA Margin
Consolidated EBITDA for H1 FY26 was INR 21.89 Cr, up 15% YoY. The EBITDA margin improved to 13.8% in H1 FY26 from 10.9% in H1 FY25, a gain of 286 bps, driven by optimized COGS and better product mix.
Capital Expenditure
Not disclosed in available documents, though the company mentions ongoing investments in advanced technology and infrastructure to strengthen safety and regulatory adherence.
Credit Rating & Borrowing
The company reported a Debt/Equity ratio of 0.00 for FY25, indicating a debt-free status. Credit rating is stated as 'Not Applicable for FY 2024-25' in the annual report.
Operational Drivers
Raw Materials
Specific chemical names are not listed, but raw materials collectively represent the 'Cost of Goods Sold' (COGS).
Capacity Expansion
The company operates 3 plants: Theda (Himachal Pradesh), Dudhwada (Gujarat), and Ranipet (Tamil Nadu). Specific MTPA capacity or planned expansion figures are not disclosed.
Raw Material Costs
COGS accounted for 54% of revenue in H1 FY26, down from 56% in H1 FY24. This 2% reduction in relative cost significantly boosted EBITDA margins.
Manufacturing Efficiency
The company focuses on improved capacity utilization and resource flow to the commercial sector, supported by the R&D center in Navi Mumbai.
Logistics & Distribution
Selling and administrative expenses, including freight, were noted to be proportionately higher in line with top-line growth and increased freight rates.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth will be achieved through the post-demerger integration of Water and Construction units, structural changes in the Distribution business expected to yield results by Q4 FY26, and leveraging the German JV (Chembond Calvatis) for industrial hygiene. The company is also targeting the infrastructure sector (metros, bridges, dams) for its construction chemicals.
Products & Services
Water treatment chemicals, admixtures, sealants, waterproofing products, repair mortars, curing agents, grouts, tiling adhesives, and industrial cleaning systems for the dairy, beverage, and brewing industries.
Brand Portfolio
Chembond, Chembond Calvatis (JV).
New Products/Services
Introduction of 'newer product technologies' in the water and construction segments contributed to the 286 bps EBITDA margin expansion in H1 FY26.
Market Expansion
Targeting customer segments including roads, metros, bridges, dams, and industrial applicators. The company is also expanding its prospect base in the Cleaning & Hygiene segment.
Strategic Alliances
Joint Venture with Calvatis GmbH (Germany) for the Chembond Calvatis Industrial Hygiene Systems Limited subsidiary.
External Factors
Industry Trends
The global specialty chemicals industry is rebounding in 2025 as destocking eases. CCL is positioning itself by shifting from pure distribution to higher-margin manufactured specialty chemicals.
Competitive Landscape
Operates in a fragmented specialty chemicals market against both domestic players and multinational subsidiaries.
Competitive Moat
CCL possesses a 50-year brand legacy, a diversified portfolio across four business units, and a specialized R&D setup which provides a technical barrier to entry in water treatment and industrial hygiene.
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and industrial production cycles. Policy backing through the Production Linked Incentive (PLI) scheme is cited as a positive driver.
Consumer Behavior
Increasing demand for high-performance applications in infrastructure and stricter hygiene standards in the food/beverage industry.
Geopolitical Risks
The company notes the global specialty chemicals industry is undergoing transformation due to supply chain shifts and destocking cycles.
Regulatory & Governance
Industry Regulations
Subject to NCLT orders regarding corporate restructuring; complies with SEBI (LODR) Regulations 2015.
Environmental Compliance
The company emphasizes rigorous compliance with international regulatory standards and investments in infrastructure for safety.
Taxation Policy Impact
Effective tax rate for H1 FY26 was approximately 30.4% (INR 5.90 Cr tax on INR 19.40 Cr PBT).
Legal Contingencies
No significant instances of non-compliance, penalties, or strictures imposed by SEBI or statutory authorities since the incorporation of the new entity structure on December 12, 2023.
Risk Analysis
Key Uncertainties
Seasonal volatility (monsoon) can impact construction chemical revenue by over 25% in a single quarter. Raw material price fluctuations remain a core risk to the 13.8% EBITDA margin.
Geographic Concentration Risk
While Pan-India, manufacturing is concentrated in three states (HP, Gujarat, TN).
Third Party Dependencies
The Distribution business (6% of revenue) is dependent on principal chemical manufacturers and is currently undergoing a 30% revenue contraction due to structural changes.
Technology Obsolescence Risk
Mitigated by the Navi Mumbai R&D center and the introduction of 'newer product technologies' which are currently driving margin growth.
Credit & Counterparty Risk
Debtors turnover ratio of 3.67 suggests a collection cycle of approximately 100 days; current ratio of 4.32 indicates very high liquidity to cover short-term liabilities.