DYNPRO - Dynemic Products

📊 NSE: DYNPRO 🏢 Dyes And Pigments 📅 Last Updated: 12/13/2025 21:43

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment: manufacturing and trading of food colors and chemicals. Consolidated total income for H1 FY26 was INR 183.82 Cr, representing a growth of 3.26% compared to INR 178.01 Cr in H1 FY25. However, Q2 FY26 revenue of INR 89.35 Cr saw an 8.7% decline compared to Q2 FY25 revenue of INR 97.90 Cr.

Profitability Margins

Net Profit Margin for H1 FY26 was approximately 5.04% (INR 9.26 Cr profit on INR 183.82 Cr revenue), an improvement from 3.75% in H1 FY25. This margin expansion is driven by a 16.25% reduction in finance costs and improved operational efficiencies.

EBITDA Margin

The EBITDA margin rose to 13.76% in Q2 FY26, showing a slight improvement over the previous quarter. This was supported by increased capacity utilization and steady market demand for specialty chemicals.

Credit Rating & Borrowing

CRISIL assigned a rating of 'ISSUER NOT COOPERATING' as of February 2020 due to lack of management interaction. Finance costs for H1 FY26 were INR 4.60 Cr, down 16.25% YoY from INR 5.49 Cr, reflecting a reduction in total debt.

⚙️ Operational Drivers

Raw Materials

Cost of materials consumed represents the largest expense at INR 90.96 Cr for H1 FY26, accounting for 49.5% of total revenue. Specific chemical names were not disclosed.

Capacity Expansion

The company has a current total installed capacity of 22,644 MT per annum. This scalable infrastructure is intended to support future growth in the specialty chemicals sector.

Raw Material Costs

Raw material costs were INR 90.96 Cr in H1 FY26, down 2.38% from INR 93.18 Cr in H1 FY25. The company manages these costs through steady procurement despite market demand fluctuations.

Manufacturing Efficiency

Operational performance in Q2 FY26 was bolstered by increased capacity utilization across its 22,644 MTPA infrastructure.

Logistics & Distribution

Other expenses, which include distribution and logistics, amounted to INR 54.04 Cr in H1 FY26, representing 29.4% of total revenue.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the optimization of the 22,644 MTPA installed capacity and leveraging steady demand in the specialty chemicals market. The company focuses on financial prudence, evidenced by a 16.25% reduction in finance costs, to ensure long-term sustainability.

Products & Services

The company manufactures and trades food colors and specialty chemicals used in food, pharmaceutical, and cosmetic industries.

Brand Portfolio

Dynemic.

Market Expansion

The company aims to meet current demand while supporting future growth opportunities in the specialty chemicals sector using its scalable capacity.

Strategic Alliances

The company has an associate, Dynemic Holdings Pvt Ltd, and a subsidiary, Cerecon Bio Sciences Private Limited.

🌍 External Factors

Industry Trends

The specialty chemicals industry is seeing steady demand, particularly for certified food-grade colors. Dynemic is positioned to benefit from this trend due to its extensive regulatory certifications.

Competitive Moat

The company's moat is built on regulatory certifications including ISO 9001, FSSC 22000, FSSAI, EU, USFDA, Kosher, Halal, and WHO-GMP. These certifications are critical for the food and pharma sectors and serve as significant entry barriers.

Consumer Behavior

There is a consistent shift toward high-quality, regulated food colors, which aligns with Dynemic's certified product portfolio.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by FSSAI (India), USFDA (USA), and EU regulatory requirements for food-grade products.

Environmental Compliance

The company maintains ISO 14001 certification and is committed to socio-environmental aspects beyond standard compliance norms.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 24.2% (INR 2.96 Cr tax on INR 12.25 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

The primary business risk is the 'Issuer Not Cooperating' status from CRISIL, which may impact future credit availability. Raw material price volatility also remains a key uncertainty.