IVP - IVP

📊 NSE: IVP 🏢 Chemicals 📅 Last Updated: 12/14/2025 8:28

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 10% YoY in H1 FY26 to INR 285.14 Cr from INR 260.27 Cr. While segment-specific revenue figures are not provided, the company reported a revival in demand for Foundry Chemicals and Polyurethane (PU) Chemicals, which drove a 20% YoY revenue increase in Q2 FY26 (INR 146.95 Cr vs INR 122.01 Cr).

Profitability Margins

Gross margins are impacted by raw material costs which represent 80.6% of revenue (INR 229.75 Cr in H1 FY26). Net Profit After Tax (PAT) for H1 FY26 was INR 5.19 Cr, a 7% decline from INR 5.59 Cr in H1 FY25, primarily due to higher finance and operating costs.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 5.02%, a decrease of 34 bps from 5.36% in H1 FY25. However, Q2 FY26 showed significant recovery with an EBITDA margin of 6.12%, up 94 bps YoY and 228 bps QoQ, driven by operational efficiencies and festive demand.

Capital Expenditure

Not disclosed in available documents, though the company is focusing on 'Balance Sheet Optimisation' and deleveraging rather than heavy new capital outlays.

Credit Rating & Borrowing

Current borrowings as of September 30, 2025, were INR 99.99 Cr. Finance costs increased 18% YoY to INR 4.30 Cr in H1 FY26 from INR 3.64 Cr, indicating an approximate annualized borrowing cost of 8.6%.

⚙️ Operational Drivers

Raw Materials

Commodity chemicals, specifically those used in Foundry Chemicals and Polyurethane (PU) production. Raw material costs represent 80.6% of total revenue.

Import Sources

Not disclosed in available documents, though the company mentions facing 'competitive pricing pressures from imports,' implying a global trade sensitivity.

Capacity Expansion

The company currently operates 2 state-of-the-art manufacturing sites. Specific MTPA capacity or planned expansion figures are not disclosed.

Raw Material Costs

Cost of materials consumed was INR 229.75 Cr in H1 FY26, a 10.4% increase from INR 208.03 Cr in H1 FY25, tracking closely with revenue growth.

Manufacturing Efficiency

Operational efficiencies were cited as a key driver for the 228 bps QoQ improvement in EBITDA margins during Q2 FY26.

📈 Strategic Growth

Growth Strategy

The company is transitioning from Foam to innovative Non-Foam applications like Flexible Packaging to tap into faster industry growth and higher margins. It aims to expand domestic market share by leveraging its 90-year legacy and the Allana Group's credibility while focusing on deleveraging to strengthen the balance sheet.

Products & Services

Foundry Chemicals, Polyurethane (PU) Chemicals, and Flexible Packaging solutions.

Brand Portfolio

IVP Limited.

New Products/Services

Flexible Packaging solutions (Non-Foam PU applications) are expected to be a major contributor to future margin expansion.

Market Expansion

Focusing on expanding domestic market share and enhancing customer engagement levels in the remainder of FY26.

Market Share & Ranking

First Indian company to produce Foundry Chemicals; specific market share % not disclosed.

Strategic Alliances

Part of the Allana Group, which provides enhanced market credibility and stakeholder trust.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized chemical applications like Flexible Packaging. IVP is positioning itself to move away from low-margin commodity chemicals toward these high-growth segments.

Competitive Landscape

Faces intense competition from both domestic players and international imports in the commodity chemical space.

Competitive Moat

Durable advantages include a 90+ year track record, established manufacturing infrastructure, and the corporate legacy of the Allana Group. These provide a trust-based moat in a competitive industrial B2B market.

Macro Economic Sensitivity

Highly sensitive to rural consumption and monsoon patterns, which drive demand in the manufacturing and consumer goods sectors (8.2% GDP growth context).