PLATIND - Platinum Industr

📊 NSE: PLATIND 🏢 Chemicals 📅 Last Updated: 12/14/2025 11:02

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 48.36% YoY to INR 3,922.61 Mn in FY25. Standalone revenue, representing the core Indian operations, grew 29.03% YoY to INR 3,248.93 Mn. For H1FY26, consolidated revenue reached INR 2,137.6 Mn, a 5.67% increase over H1FY25.

Geographic Revenue Split

India operations (Standalone) contributed approximately 82.8% of total consolidated revenue in FY25 (INR 3,248.93 Mn out of INR 3,922.61 Mn). The company is aggressively expanding into Egypt (leveraging the Suez Canal), Europe, Southeast Asia, Africa, and the Middle East.

Profitability Margins

Gross margins contracted significantly by 873 bps to 29.98% in FY25 from 38.71% in FY24 due to input cost pressures. PAT margin declined by 368 bps to 12.77% in FY25 from 16.45% in FY24. H1FY26 consolidated PAT margin stood at 12.3%.

EBITDA Margin

Consolidated EBITDA margin dropped 839 bps to 14.72% in FY25 from 23.11% in FY24. Absolute EBITDA declined 5.47% YoY to INR 577.56 Mn. H1FY26 consolidated EBITDA margin further moderated to 13.4% compared to 17.6% in H1FY25.

Capital Expenditure

The company is investing in a new manufacturing unit at Palghar with an estimated installed capacity of 60,000 MTPA, expected to be operational during FY26. This facility focuses on modernizing production for non-lead-based stabilizers.

Credit Rating & Borrowing

The company is near debt-free with a debt-to-equity ratio of 0.01. It maintains a robust interest coverage ratio of 25.27x, indicating very low borrowing costs and high solvency.

⚙️ Operational Drivers

Raw Materials

Petrochemicals represent the primary raw material component. Cost of Goods Sold (COGS) rose to INR 2,746.68 Mn in FY25, accounting for 69.49% of total revenue compared to 61.29% in the previous year.

Import Sources

Not disclosed in available documents, though the company mentions strategic sourcing and international operations in Egypt.

Capacity Expansion

Current capacity not explicitly stated in total MT; however, the company is adding 60,000 MTPA of capacity at its Palghar unit for non-lead-based stabilizers, scheduled for FY26 completion.

Raw Material Costs

Raw material costs (COGS) increased 69.5% YoY to INR 2,746.68 Mn in FY25. The company manages this through long-term supplier relationships and exploring alternative raw materials to reduce single-source dependency.

Manufacturing Efficiency

The company is transitioning to Zero Liquid Discharge (ZLD) and targeting a 30% reduction in water usage by 2025 to improve environmental efficiency.

Logistics & Distribution

Distribution strategy focuses on the Suez Canal hub to optimize global freight costs and improve delivery timelines for international markets.

📈 Strategic Growth

Expected Growth Rate

28%

Growth Strategy

Growth will be driven by the commissioning of the 60,000 MTPA Palghar facility in FY26, aggressive expansion into the Egyptian and European markets, and a strategic shift toward high-demand non-lead-based stabilizers. The company is also utilizing IPO proceeds to fund capital expenditure and maintain a low-debt balance sheet for flexibility.

Products & Services

PVC stabilizers, lead-based stabilizers, non-lead-based (eco-friendly) stabilizers, and lubricants used in industrial applications.

Brand Portfolio

Platinum Industries.

New Products/Services

New non-lead-based stabilizers are being launched to cater to the growing global demand for eco-conscious chemical alternatives.

Market Expansion

Targeting Southeast Asia, Africa, and the Middle East, with a specific focus on the Egypt facility as a gateway to global markets.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable, non-lead-based stabilizers due to environmental regulations. Platinum is positioning itself for this shift with its new 60,000 MTPA specialized unit.

Competitive Landscape

Characterized by intense competition from both domestic and international low-cost chemical manufacturers.

Competitive Moat

Moat is built on a near debt-free balance sheet (0.01 D/E), strategic geographic positioning in Egypt for low-cost global logistics, and technical transition to eco-friendly stabilizers which have higher entry barriers.

Macro Economic Sensitivity

Highly sensitive to construction and infrastructure spending cycles, as these drive the demand for PVC-based products.

Consumer Behavior

Increasing consumer and regulatory preference for lead-free and sustainable chemical additives in construction materials.

Geopolitical Risks

Operations near the Suez Canal expose the company to regional geopolitical stability risks, though the location is currently used as a strategic logistics advantage.

⚖️ Regulatory & Governance

Industry Regulations

Subject to stringent environmental and safety regulations regarding chemical formulations, particularly those involving lead-based components which are facing global restrictions.