EXCELINDUS - Excel Industries

📊 NSE: EXCELINDUS 🏢 Pesticides / Agrochemicals - Indian 📅 Last Updated: 12/13/2025 22:01

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 18% in FY 2024-25 to INR 978.07 Cr from INR 826.14 Cr. In Q2 FY26, revenue was INR 270.2 Cr, a 12.7% decline QoQ from INR 309.5 Cr in Q1 FY26, primarily due to subdued demand in the agrochemical segment. The environmental business remains a minor contributor at 1% of total revenue.

Geographic Revenue Split

Domestic sales account for approximately 80% of revenue, while exports contributed 20% in fiscal 2023, down from 25.5% in fiscal 2022 due to headwinds in export markets.

Profitability Margins

Net Profit Margin improved significantly to 8.54% in FY 2024-25 from 1.83% in FY 2023-24. Operating Profit Margin for FY 2024-25 was 11.58%, up 334.23% from 2.67% in the previous year. However, Q2 FY26 PAT margin stood at 7.8%, down from 13.3% in Q2 FY25.

EBITDA Margin

EBITDA margin for Q2 FY26 was 11.1%, a decrease from 13.6% in Q1 FY26 and 18.2% in Q2 FY25. Management targets a full-year FY26 EBITDA margin of 13-15% based on expected recovery in the second half.

Capital Expenditure

The company has planned capital expenditure of INR 200-300 Cr spread over the next three years. A specific long-term contract for specialty chemicals involves a dedicated capex of INR 35-40 Cr.

Credit Rating & Borrowing

The company maintains a strong financial risk profile with a 'Negative' outlook from rating agencies due to subdued near-term operating performance. It is essentially debt-free with a debt-to-equity ratio of 1.04% as of FY 2024-25 and an interest coverage ratio of 47.82x.

⚙️ Operational Drivers

Raw Materials

The company utilizes various chemical intermediates for its production processes, though specific chemical names like phosphorus or sulfur are not explicitly listed in the provided documents.

Capacity Expansion

Current capacity utilization stands at 70-75% across three manufacturing sites. Planned expansion includes a biocide capacity increase and new facilities for a long-term specialty chemical contract requiring INR 35-40 Cr investment.

Raw Material Costs

Raw material prices have stabilized recently, which contributed to the operating margin expansion to 12.2% in fiscal 2025 from 3% in fiscal 2024. In FY23, a mismatch between sales prices and input costs caused margins to drop to 11.6%.

Manufacturing Efficiency

Capacity utilization is maintained at 70-75%. Manufacturing efficiency is supported by prudent working capital management and a debt-free balance sheet.

📈 Strategic Growth

Expected Growth Rate

13-15%

Growth Strategy

Growth will be driven by the 'Performance Solutions' sector and contract manufacturing. The company is investing INR 35-40 Cr in a new long-term contract for non-agro specialty chemicals and expanding biocide capacity to ensure sustained value creation and diversification away from agrochemicals.

Products & Services

Chemical intermediates for agrochemicals, commodity polymers, engineering polymers, soaps, detergents, water-treatment chemicals, and biocides.

Brand Portfolio

Excel Industries Limited.

New Products/Services

New initiatives include a long-term supply contract for a specialty chemical (non-agro) and expanded biocide offerings.

Market Expansion

The company is targeting the non-agro specialty chemical market to reduce sector-specific cyclicality.

Strategic Alliances

The company recently divested its 19.99% stake in associate company Mobitrash Recycle Ventures Private Limited (MRVPL) to Mr. Ashwin C. Shroff.

🌍 External Factors

Industry Trends

The chemical industry is seeing a demand revival in specialty segments. Excel is positioning itself by shifting focus toward performance solutions, which are expected to grow faster than traditional agrochemical intermediates.

Competitive Moat

Excel possesses a durable moat through its long-standing legacy as one of India's oldest chemical companies, a diversified product portfolio across pharma and polymers, and a strong debt-free financial structure with INR 223 Cr in unencumbered cash surplus.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns; an extended monsoon in Q2 FY26 led to subdued demand in the agrochemical segment and a 12.7% QoQ revenue drop.

Geopolitical Risks

Headwinds in export markets have historically impacted volumes, leading to a decline in export share to 20% of total sales.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to standard chemical industry manufacturing standards and pollution norms, though specific new regulatory impacts were not detailed.

Taxation Policy Impact

The effective tax rate for Q2 FY26 was approximately 22.9%, with INR 6.3 Cr tax paid on a Profit Before Tax of INR 27.5 Cr.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Negative' outlook on operating performance in the near term, which may result in suboptimal cash generation if agrochemical demand remains subdued.