INDOAMIN - Indo Amines

📊 NSE: INDOAMIN 🏢 Chemicals 📅 Last Updated: 12/14/2025 8:01

💰 Financial Performance

Revenue Growth by Segment

Standalone Revenue from Operations for H1 FY26 reached INR 538.15 Cr (calculated from Q1 and Q2), representing a 3.2% YoY growth compared to INR 521.42 Cr in H1 FY25. The fine and specialty chemicals segment remains the primary driver.

Geographic Revenue Split

Standalone operations in India contribute approximately 85% of total revenue, while international subsidiaries in the USA, Malaysia, China, and Europe contribute the remaining 15% (INR 77.56 Cr in H1 FY26).

Profitability Margins

Operating margins improved from 8.98% in 9M FY24 to 9.62% in 9M FY25, driven by better operating efficiency and prudent inventory management.

EBITDA Margin

The operating margin is 9.62% as of 9M FY25 and is expected to sustain above 9.70% over the medium term due to increased capacity utilization.

Capital Expenditure

Capital Work In Progress (CWIP) increased significantly from INR 32.27 Cr as of March 31, 2025, to INR 61.71 Cr as of September 30, 2025, indicating an investment of INR 29.44 Cr in H1 FY26.

Credit Rating & Borrowing

CRISIL Ratings maintains a healthy profile with a gearing of 0.88 times as of September 30, 2024. Interest coverage improved to 5.4 times for 9M FY25 from 4.3 times YoY.

⚙️ Operational Drivers

Raw Materials

The company utilizes various commodity chemicals as raw materials for amine production, which account for approximately 68.1% of total revenue (INR 181.92 Cr consumed in Q2 FY26).

Import Sources

Raw materials are sourced globally, supported by subsidiaries in Malaysia, China, the USA, and Europe.

Capacity Expansion

Current capacity utilization is increasing; however, specific installed capacity in MTPA is not disclosed. CWIP of INR 61.71 Cr suggests ongoing expansion projects.

Raw Material Costs

Raw material costs represent 68.1% of revenue as of Q2 FY26. The company is susceptible to commodity price volatility, which impacts operating margins.

Manufacturing Efficiency

Operating efficiency has improved, as evidenced by the margin expansion from 8.98% to 9.62% YoY.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through increased capacity utilization, the addition of new products in the specialty chemical segment, and expanding the global footprint via wholly-owned subsidiaries in key markets like the USA and Europe.

Products & Services

The company manufactures and sells fine and specialty chemicals, specifically fatty amines and their derivatives.

Brand Portfolio

Indo Amines.

New Products/Services

Continuous product additions in the fine and specialty chemical segment are expected to drive steady revenue growth.

Market Expansion

Targeting global markets through established subsidiaries in Malaysia, USA, China, and Europe.

Strategic Alliances

Wholly-owned subsidiaries include Indo Amines (Malaysia) SDN BHD, Indo Amines Americas LLC, Indo Amines (Changzhou) Co. Ltd, and Indo Amines (Europe) Ltd.

🌍 External Factors

Industry Trends

The specialty chemicals industry is seeing a shift toward higher-value derivatives, with Indo Amines positioning itself through capacity increases and product diversification.

Competitive Landscape

The company faces intense competition in the fine and specialty chemical segments.

Competitive Moat

The moat is built on an established market position in the amines segment and a diverse product range, which are sustainable due to the technical expertise required in specialty chemical manufacturing.

Macro Economic Sensitivity

Highly sensitive to global commodity price cycles and chemical industry demand.

Geopolitical Risks

Operations in China and Europe expose the company to regional geopolitical tensions and trade policy changes.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with pollution control norms and manufacturing standards applicable to the chemical industry in India and its subsidiary locations.