IEML - Indian

📊 NSE: IEML 🏢 Chemicals 📅 Last Updated: 12/14/2025 7:58

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 51.8% YoY, increasing from INR 66.68 Cr in FY24 to INR 101.23 Cr in FY25. Segment-specific growth percentages were not disclosed in the available documents.

Geographic Revenue Split

The company primarily operates in India but is expanding into Australia. The Australian subsidiary is expected to contribute significantly to future revenue, with Phase 1 and 2 aimed at increasing gross margins by 15% compared to domestic levels.

Profitability Margins

Gross margins currently range between 28% and 33%. The Net Profit Margin for FY25 was 13.1%, with Profit After Tax (PAT) rising 50.7% YoY to INR 13.30 Cr from INR 8.82 Cr in FY24.

EBITDA Margin

EBITDA margins are maintained in the range of 19% to 22%. Management expects this range to remain sustainable despite month-to-month fluctuations in product mix and operational factors.

Capital Expenditure

The company invested INR 39.17 Cr in Property, Plant, and Equipment (PPE) additions during FY25. This was primarily funded by IPO proceeds for the installation of new modern machineries and business expansion.

Credit Rating & Borrowing

Total borrowings as of March 31, 2025, stood at INR 25.59 Cr (INR 6.74 Cr non-current and INR 18.85 Cr current). The effective interest cost was approximately 9.4% based on a finance cost of INR 2.41 Cr for the year. Specific credit ratings were not disclosed.

⚙️ Operational Drivers

Raw Materials

The company manufactures specialty chemicals and emulsifiers; however, specific chemical raw material names (e.g., specific fatty acids or alcohols) were not disclosed in the documents.

Import Sources

The company is sourcing/moving products through its Australian subsidiary to capture higher margins. Specific sourcing countries for raw materials were not explicitly listed.

Capacity Expansion

The company utilized IPO funds for the installation of new modern machineries to support a targeted 100% revenue growth. Specific capacity figures in MTPA were not disclosed.

Raw Material Costs

Cost of materials consumed was INR 74.27 Cr in FY25, representing 73.4% of total revenue. This reflects a 45.2% increase from INR 51.16 Cr in FY24.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth will be achieved through a 100% revenue increase target for FY26, driven by the deployment of IPO funds into modern machinery, expansion of the product basket, and the operationalization of the Australian subsidiary (Phase 1 and 2) which is expected to boost gross margins to the 45% range.

Products & Services

The company manufactures and sells specialty chemicals and emulsifiers used in various industrial applications.

Brand Portfolio

Indian Emulsifiers Limited (IEML).

Market Expansion

Expansion into the Australian market via a subsidiary to capture an additional 15% gross margin by selling directly to end customers.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized emulsifiers with higher margin profiles. IEML is positioning itself by modernizing its manufacturing base and expanding geographically to capture end-user margins.

Competitive Moat

The company's moat is built on its specialized product mix and its strategy to bypass intermediaries in international markets (Australia), which adds a 15% margin advantage that is difficult for domestic-only competitors to replicate.

Geopolitical Risks

The expansion into Australia introduces exposure to international trade regulations and cross-border logistics risks.

⚖️ Regulatory & Governance

Industry Regulations

The company transitioned to Indian Accounting Standards (Ind AS) effective April 1, 2024. It must comply with Section 133 of the Companies Act 2013 and ICAI guidance notes on internal financial controls.

Taxation Policy Impact

The company recorded a current tax expense of INR 2.99 Cr in FY25 on a Profit Before Tax of INR 16.41 Cr, representing an effective tax rate of approximately 18.2%.

Legal Contingencies

INR 0. The company reported no pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful execution of the 100% revenue growth target for FY26 and the bottom-line performance of the Australian subsidiary, which will only be clear after March/April 2026.

Geographic Concentration Risk

Currently high concentration in India, with active diversification efforts into Australia to mitigate domestic market risks.

Third Party Dependencies

The company has sanctioned working capital limits exceeding INR 5 Cr from banks, indicating dependency on continued banking relationships for liquidity.