💰 Financial Performance

Revenue Growth by Segment

The company's Total Operating Income grew at a CAGR of 26% between FY21 and FY25. In FY22, the Agriculture business (SSP and Sulphuric Acid) contributed 42% of revenue, while the Performance Polymers and Consumer Products division contributed 58%. Revenue in FY22 reached INR 1,166 Cr, representing a massive 87% YoY growth from INR 622 Cr in FY21, driven by volume expansion and higher fertilizer realizations.

Geographic Revenue Split

The Ramban fertilizer brand holds a healthy market share specifically in Uttar Pradesh and Uttarakhand. While a specific percentage split for all regions is not disclosed, the company operates manufacturing facilities in Gajraula (UP) and Savli (Gujarat), indicating a strong domestic focus in Northern and Western India.

Profitability Margins

Operating profitability has historically ranged between 8-9%. Net Profit (PAT) margin stood at 4.6% in FY22 (INR 54 Cr) compared to a negative margin of -1.5% (INR -9 Cr loss) in FY21. The improvement was driven by better absorption of fixed costs following the 87% revenue surge.

EBITDA Margin

The PBILDT margin improved to 9.5% in FY25 from 8.5% in FY21. This 100 bps expansion was aided by raw material cost moderation and a shift toward higher-margin consumer products (CPD) and performance polymers, which together with VP latex accounted for 84% of total EBITDA in FY25.

Capital Expenditure

The Board approved a CAPEX of INR 50 Cr in November 2025 for the Savli, Vadodara site. This investment is intended to expand the Performance Polymers and Chemical segment capacity by 30,000 MT per annum to meet increasing market demand.

Credit Rating & Borrowing

The company holds a 'CARE A+; Stable / CARE A1+' rating as of October 2025. Borrowing costs are linked to market rates; interest coverage was robust at 6.7 times in FY22, up from 3.25 times in FY21, reflecting significantly reduced financial risk.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Vinyl Acetate Monomer (VAM) for polymers, and Rock Phosphate and Sulphur for the fertilizer segment. Raw material costs represent approximately 60% of total revenue, making profitability highly sensitive to global commodity cycles.

Import Sources

A sizeable portion of raw materials is imported, exposing the company to international price benchmarks and shipping logistics. While specific countries are not listed, the reliance on imports necessitates significant foreign exchange management.

Key Suppliers

Not specifically disclosed in the available documents; however, the company notes it benefits from long-standing relationships and receives longer credit periods from its supplier base.

Capacity Expansion

Current capacity is being augmented by a planned expansion of 30,000 MT per annum at the Savli (Gujarat) facility for Performance Polymers. This expansion leverages existing infrastructure to improve operating efficiency.

Raw Material Costs

Raw material costs account for 60% of revenue. In FY24-25, moderation in raw material prices helped stabilize PBILDT margins at 9.5%. The company has limited ability to pass on sudden spikes in VAM or Rock Phosphate prices in the consumer segment due to intense retail competition.

Manufacturing Efficiency

The company is focusing on leveraging existing infrastructure at Savli to bring overall cost and operating efficiency. Capacity utilization is supported by a 26% CAGR in sales volumes over the last four years.

Logistics & Distribution

The company maintains an extensive dealer network for its Jivanjor and Ramban brands. Distribution costs are a key factor in the consumer segment where brand differentiation and availability are critical for market share.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Growth will be achieved through the demerger of the agri-business to allow a specialized focus on the high-margin Performance Polymers and Adhesives segment. The company is investing INR 50 Cr to add 30,000 MTPA capacity in Gujarat and is strengthening its dealer network for consumer brands like Jivanjor and Charmwood to increase retail penetration.

Products & Services

Single Super Phosphate (SSP) fertilizer, Sulphuric Acid, Solid Polyvinyl Acetate (SPVA), VP Latex, Wood Adhesives, and Wood Finishes.

Brand Portfolio

Jivanjor (Adhesives), Charmwood (Wood Finishes), Ultra Italia (Premium Finishes), and Ramban (Fertilizers).

New Products/Services

The company is diversifying the agri-business into bulk fertilizers and agri-nutrients post-demerger to capture a wider share of the farm-input market.

Market Expansion

Expansion is focused on the Western region via the Savli plant expansion and deepening the retail presence of consumer brands across India.

Market Share & Ranking

JACPL holds a leading market position in Solid Polyvinyl Acetate (SPVA) and Vinyl Pyridine (VP) Latex in India.

Strategic Alliances

The company operates as a key subsidiary of the Jubilant Bhartia Group (JBG), receiving strategic and financial support, including INR 42 Cr equity infusion and INR 56 Cr in inter-corporate deposits in previous years.

🌍 External Factors

Industry Trends

The industry is shifting toward high-performance polymers and specialized agri-nutrients. The SSP fertilizer market is growing due to government focus on balanced soil nutrition, while the wood adhesives market is seeing a shift toward branded, high-quality products.

Competitive Landscape

Intense competition exists from large incumbents in the consumer adhesive segment (e.g., Pidilite) and from both organized and regional players in the SSP fertilizer market.

Competitive Moat

The moat is built on market leadership in SPVA/VP Latex and strong brand recall for 'Jivanjor'. These are sustainable due to high switching costs in industrial applications and an established distribution network of thousands of dealers that is difficult for new entrants to replicate.

Macro Economic Sensitivity

The Agri-business is highly sensitive to monsoon performance and government subsidy policies. A 10% change in subsidy realizations can significantly impact the working capital cycle of the fertilizer segment.

Consumer Behavior

There is an increasing trend toward premium wood finishes (Ultra Italia) and branded adhesives as consumers move away from unbranded local alternatives.

Geopolitical Risks

Trade barriers or supply disruptions in countries exporting Rock Phosphate or VAM could increase procurement costs and lead to production bottlenecks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by the Department of Fertilizers' subsidy policies and environmental regulations regarding the handling of Sulphuric Acid and chemical manufacturing standards.

Environmental Compliance

The company operates in the chemical and fertilizer sectors, requiring strict adherence to pollution control norms at its Gajraula and Savli plants. Compliance is managed through internal controls and regular audits.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; current tax liabilities stood at INR 306.29 Cr in the FY25 balance sheet.

Legal Contingencies

The company has disclosed pending litigations in Note 40 of its financial statements. While specific values are not detailed in the summary, the management believes they will not have a material adverse impact on the financial position.

⚠️ Risk Analysis

Key Uncertainties

Volatility in VAM and Rock Phosphate prices (60% cost base) and monsoon dependency for the 42% revenue-contributing agri-segment are the primary uncertainties.

Geographic Concentration Risk

There is a concentration of fertilizer sales in Uttar Pradesh and Uttarakhand, making the agri-revenue highly dependent on the agricultural economy of Northern India.

Third Party Dependencies

Dependency on global suppliers for VAM and Rock Phosphate is high, as these are critical raw materials with limited domestic availability.

Technology Obsolescence Risk

The company is mitigating technology risks by investing INR 50 Cr in new manufacturing facilities and focusing on R&D for performance polymers.

Credit & Counterparty Risk

Receivables quality is considered adequate; however, the fertilizer segment is subject to delays in government subsidy payments, which can stretch the working capital cycle.