INDOBORAX - Indo Borax & Ch.

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

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Manufacturing and selling of Chemicals', which generated revenue of INR 117.55 Cr for H1 FY26, representing a growth of 23.97% compared to INR 94.82 Cr in H1 FY25.

Profitability Margins

Standalone Net Profit Margin for H1 FY26 stood at 22.22% (INR 26.13 Cr profit on INR 117.55 Cr revenue). Profit before tax (PBT) margin was 31.02% (INR 36.47 Cr).

EBITDA Margin

EBITDA margin for H1 FY26 was approximately 24.53% (INR 28.84 Cr core EBITDA on INR 117.55 Cr revenue), excluding the exceptional gain of INR 9.35 Cr from the sale of office premises.

Capital Expenditure

Property, Plant & Equipment (PPE) decreased from INR 21.01 Cr as of March 31, 2025, to INR 14.55 Cr as of September 30, 2025, primarily due to the disposal of office premises which resulted in an exceptional profit of INR 9.35 Cr.

Credit Rating & Borrowing

Finance costs were negligible at INR 0.12 Lakhs for H1 FY26, down from INR 0.23 Lakhs in H1 FY25, indicating a virtually debt-free status or very low borrowing costs.

⚙️ Operational Drivers

Raw Materials

Boron minerals (such as Colemanite or Kernite) are the primary raw materials for the chemical segment, though specific names and cost percentages are not explicitly detailed in the provided financial tables.

Capacity Expansion

The Pithampur plant resumed operations on November 22, 2025, following a period of inactivity. Specific installed capacity in MTPA was not disclosed.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 61.33 Cr, representing 52.17% of revenue, compared to INR 38.49 Cr (40.59% of revenue) in H1 FY25, indicating a significant YoY cost increase of 59.34%.

Manufacturing Efficiency

Depreciation and amortization expenses increased by 68.1% YoY to INR 1.72 Cr in H1 FY26, suggesting recent asset additions or changes in depreciation schedules.

Logistics & Distribution

Other expenditure, which includes distribution and logistics, rose 21.68% YoY to INR 21.01 Cr in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is expected to be driven by the resumption of operations at the Pithampur plant in November 2025 and the continued expansion of the core chemical manufacturing business. The company is also leveraging its infrastructure subsidiary, which contributed INR 45.56 Lakhs in revenue in Q2 FY26.

Products & Services

Boric Acid and Borax (implied by company name and chemical segment focus).

Brand Portfolio

Indo Borax.

🌍 External Factors

Industry Trends

The specialty chemicals industry is seeing a shift toward higher-purity products and stable supply chains. Indo Borax is positioned as a niche player in boron chemistry, benefiting from the resumption of its primary manufacturing unit.

Competitive Moat

The company's moat is built on its specialized manufacturing capabilities in boron chemicals and a strong balance sheet with negligible debt, providing resilience against interest rate cycles.

Macro Economic Sensitivity

Highly sensitive to industrial demand for chemicals and global boron mineral pricing cycles.

Geopolitical Risks

Potential trade barriers or supply chain disruptions in countries exporting boron minerals could impact raw material security.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to chemical manufacturing standards and environmental pollution norms; the company appointed M/s. Y. B. Modi & Associates as Cost Auditors for FY 2025-26 to ensure regulatory compliance.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 28.37% (INR 10.35 Cr tax on INR 36.47 Cr PBT).

Legal Contingencies

The secretarial audit report for FY25 did not contain any qualifications or reservations having a material adverse effect on the company's functioning.