CHEMPLASTS - Chemplast Sanmar

📊 NSE: CHEMPLASTS 🏢 Chemicals 📅 Last Updated: 12/13/2025 21:00

💰 Financial Performance

Revenue Growth by Segment

Specialty Chemicals grew 10% YoY to INR 726 Cr in H1 FY26, driven by new Paste PVC capacity. Value-added Chemicals declined 9% YoY to INR 276 Cr due to pricing pressure. Suspension PVC remained flat at INR 1,131 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company mentions expanding into global markets and domestic demand shifts.

Profitability Margins

Consolidated EBITDA margin for H1 FY26 was 3%, a significant drop from 7% in H1 FY25. FY24-25 consolidated loss after tax was INR 110.36 Cr, an improvement from a loss of INR 158.43 Cr in FY23-24.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 3%, down from 7% YoY. EBITDA for H1 FY26 was INR 60 Cr, representing a 60% YoY decrease from INR 150 Cr.

Capital Expenditure

Phase II expansion of CMC division completed in FY24-25. Phase 3 of MPB 3 and civil works for MPB 4 are progressing with expected completion in Q3 FY26 and Q4 FY26 respectively.

Credit Rating & Borrowing

Finance costs increased 31% to INR 235.88 Cr in FY24-25 from INR 180.52 Cr due to post-capitalisation impact of project loans. Consolidated net debt stood at INR 1,319 Cr as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Hazardous chemicals and commodity-linked inputs including those for PVC and Hydrogen Peroxide production. Specific percentage of total cost per material is not disclosed.

Import Sources

Not disclosed in available documents, though the company notes vulnerability to geopolitical issues affecting supply chains.

Capacity Expansion

Hydrogen Peroxide reached record sales of 28,390 MT in FY24-25. CMC division has 17 products commercialized with new capacities in MPB 3 and MPB 4 expected to ramp up in late FY26.

Raw Material Costs

Raw material costs are subject to commodity price swings and currency fluctuations. The company uses hedging and sourcing diversification to mitigate these risks.

Manufacturing Efficiency

The company focuses on cost leadership and operational efficiency to protect profitability in a softening pricing environment. Most plants hold Five Star ratings from the British Safety Council.

📈 Strategic Growth

Expected Growth Rate

12.40%

Growth Strategy

Growth will be achieved through the commercialization of a diversified product pipeline in the CMC division (17 products currently), capacity expansion in Paste PVC at Cuddalore, and the completion of MPB 3 and MPB 4 blocks by Q4 FY26 to broaden the customer base in agrochemicals and life sciences.

Products & Services

Specialty Paste PVC resin, Suspension PVC, Custom Manufactured chemicals (intermediates and active ingredients), Caustic Soda, Chloromethanes, Hydrogen Peroxide, and Refrigerant gases.

Brand Portfolio

Chemplast Sanmar, Sanmar Group.

New Products/Services

17 products commercialized in CMC with several more in the pipeline; new Paste PVC plant at Cuddalore is already driving 10% growth in Specialty Chemicals.

Market Expansion

Targeting high-growth sectors such as agrochemicals and life sciences through custom manufacturing engagements.

Market Share & Ranking

#1 manufacturer of Specialty Paste PVC in India and 2nd largest producer of Suspension PVC in India.

Strategic Alliances

Long-standing partnerships (15+ years) with global originator and innovator companies in the CMC segment.

🌍 External Factors

Industry Trends

The Indian Specialty Chemicals industry is projected to grow at a CAGR of 12.4% through 2025. There is a significant shift toward sustainability and zero-liquid discharge manufacturing.

Competitive Landscape

Facing intense competition from new entrants in the Hydrogen Peroxide market and low-priced imports from the EU in the PVC segment.

Competitive Moat

Moat is built on market leadership in Paste PVC, a highly integrated closed-loop manufacturing process, and 15-year relationships with global innovators which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global supply shifts and commodity price cycles, particularly in the PVC and Hydrogen Peroxide markets.

Consumer Behavior

Rising demand for eco-friendly products in healthcare and paper & pulp is driving growth in the Hydrogen Peroxide segment.

Geopolitical Risks

Geopolitical shifts, such as unrest in Bangladesh, have led to an influx of lower-priced imports into the Indian domestic market.

⚖️ Regulatory & Governance

Industry Regulations

Anti-Dumping Duty (ADD) on PVC imports from certain regions; Quality Control Orders (QCO) and ongoing ADD investigations into EU imports (decision expected Q2 FY26).