TAINWALCHM - Tainwala Chem.

📊 NSE: TAINWALCHM 🏢 Trading 📅 Last Updated: 12/14/2025 14:06

💰 Financial Performance

Revenue Growth by Segment

Plastic Sheets segment revenue grew 9% YoY to INR 4.89 Cr in FY25 but declined 3.67% YoY to INR 1.81 Cr in H1 FY26. Tradable Items revenue declined 14.89% YoY to INR 11.52 Cr in FY25 and 0.67% YoY to INR 4.61 Cr in H1 FY26.

Profitability Margins

Operating PBT margin for H1 FY26 was approximately 1.4% (INR 8.99 Lakhs on INR 6.42 Cr revenue). Total PBT margin was 56.5% of total income, heavily skewed by INR 8.55 Cr in dividend income.

EBITDA Margin

Operating EBITDA is low; PBT of INR 8.24 Cr for H1 FY26 is 128% of revenue from operations (INR 6.42 Cr) due to INR 8.15 Cr in Other Income, primarily from dividends.

Capital Expenditure

Historical capital expenditure was minimal at INR 0.29 Lakhs for FY25. No major planned expansion was quantified in INR.

Credit Rating & Borrowing

Not disclosed. Finance costs were INR 0.00 in H1 FY26, down from INR 1.41 Lakhs in FY25, indicating negligible interest-bearing debt.

⚙️ Operational Drivers

Raw Materials

PVC (Polyvinyl Chloride) resins and compounds for engineering sheets, representing a significant portion of the INR 0.93 Cr material cost in H1 FY26.

Capacity Expansion

Current installed capacity is not disclosed. Management is focused on identifying new customer markets to utilize operational capacity more efficiently.

Raw Material Costs

Cost of materials consumed was INR 0.93 Cr in H1 FY26, up 11.2% from INR 0.84 Cr in H1 FY25. Procurement strategies focus on efficiency and waste reduction.

Manufacturing Efficiency

Headcount stood at 21 as of March 31, 2025. Efficiency is managed through tailored learning opportunities and in-house R&D.

📈 Strategic Growth

Growth Strategy

Focusing on the PVC Engineering Sheets segment for infrastructure (sewage and water treatment) and low-cost housing. Strategy includes identifying new customer markets and leveraging government initiatives in environmental applications.

Products & Services

PVC Engineering Sheets and Tradable Items (Commodity Trading).

Brand Portfolio

Tainwala.

Market Expansion

Targeting infrastructure and environmental applications driven by government funding and global initiatives.

Strategic Alliances

None disclosed; the company has no subsidiaries, associates, or joint ventures as of September 30, 2025.

🌍 External Factors

Industry Trends

Growing demand for sewage and water treatment systems is boosting PVC sheet demand, while the industry faces a shift toward eco-friendly alternatives to PVC.

Competitive Landscape

Faces intense competition from low-cost foreign manufacturers and manufacturers of eco-friendly alternatives to PVC.

Competitive Moat

Moat is based on specialized PVC engineering sheets and in-house R&D, but it is threatened by emerging eco-friendly alternatives and regulatory plastic bans.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and government reforms in the housing and water treatment sectors.

Consumer Behavior

Shift toward sustainable and eco-friendly materials is a long-term threat to the PVC-based product line.

Geopolitical Risks

Trade barriers and import competition from low-cost foreign manufacturers are primary concerns.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily impacted by environmental regulations and potential plastic bans affecting PVC products.

Environmental Compliance

Capital-intensive upgrades are required for compliance with evolving environmental regulations and plastic bans.

Taxation Policy Impact

Income taxes paid (Net) in H1 FY26 was INR 1.06 Cr. Statutory tax rates apply.

Legal Contingencies

No material discrepancies were noticed in physical verification of inventory. No working capital limits in excess of INR 5 Cr were sanctioned, limiting regulatory reporting requirements.