DMCC - DMCC Speciality

📊 NSE: DMCC 🏢 Chemicals 📅 Last Updated: 12/13/2025 21:37

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 26% YoY in 9MFY25 to INR 306 Cr. In FY23, bulk chemicals grew 18% and contributed 47-48% of total sales (INR 184.6 Cr), while specialty chemicals contributed the remaining 52-53%.

Geographic Revenue Split

The company serves both domestic and overseas markets across various geographies, though the specific percentage split between regions is not disclosed in available documents.

Profitability Margins

PAT margins were 3.51% in FY24 (INR 11.59 Cr), up from 1.80% in FY23 (INR 6.93 Cr), but down from 6.55% in FY22 (INR 21.36 Cr). Operating margins have been volatile, ranging from 8.8% to 23.6% over the last five years.

EBITDA Margin

EBITDA margin was 13.69% in 9MFY25, an improvement from 10.60% in Q1FY25 and 8.8% in FY23. The company expects to maintain operating margins between 13% and 14% over the medium term.

Capital Expenditure

The company has no major debt-funded capex plans over the medium term, as recent 'enhanced capacities' are already expected to support business profile growth.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Bank loan facilities were recently enhanced from INR 105 Cr to INR 125 Cr, with bank limit utilization low at approximately 39% to 49.38% in 2024.

⚙️ Operational Drivers

Raw Materials

Major raw materials include sulfur, benzene, ethanol, and boron, which collectively account for 60-65% of total sales costs.

Capacity Expansion

Current capacity is described as 'enhanced' following previous expansions; no specific MTPA figures or new planned expansion timelines are provided for the medium term.

Raw Material Costs

Raw material costs represent 60-65% of revenue. Profitability is highly susceptible to price fluctuations in these inputs, with a limited ability to pass on costs in the bulk chemical segment (48% of sales).

Manufacturing Efficiency

Manufacturing efficiency is supported by three decades of promoter experience and plants located in Roha (Maharashtra) and Dahej (Gujarat).

📈 Strategic Growth

Expected Growth Rate

21-24%

Growth Strategy

Growth will be achieved by utilizing recently enhanced capacities, focusing on higher-margin specialty chemicals (8 key products), and leveraging established market positions in sulfur and ethanol chemistry to reach an estimated FY25 revenue of INR 400-410 Cr.

Products & Services

Sulphuric acid, specialty and commodity chemicals based on sulphur, ethanol, and boron chemistries.

Brand Portfolio

Ship brand (formerly used for phosphate fertilizers).

New Products/Services

The company recently achieved higher realizations from Boron products, contributing to a 13.69% EBITDA in 9MFY25.

Market Expansion

The company is expanding its presence in domestic and overseas markets through its established relations with reputed clients across geographies.

Strategic Alliances

Borax Morarji Ltd was amalgamated with DMCC effective April 01, 2016, to consolidate the chemical business.

🌍 External Factors

Industry Trends

The industry is shifting toward specialty chemicals to stabilize margins; DMCC is positioning itself with 8 specialty products to counter the volatility of its 4 bulk chemical products, aiming for a 13-14% operating margin.

Competitive Landscape

High competition exists in the commodity/bulk chemical segments, while specialty segments offer more protected margins.

Competitive Moat

The moat is based on a 100+ year history (incorporated 1919), status as a pioneer in sulphuric acid, and a diversified portfolio that allays sectoral concentration risks.