TECILCHEM - TECIL Chemical

📊 NSE: TECILCHEM 🏢 Chemicals 📅 Last Updated: 12/14/2025 14:16

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations is INR 0.00 Lacs for the half-year ended September 30, 2025, representing 0% growth as the production unit remains closed. The company is currently not engaged in any active business activity.

Geographic Revenue Split

Geographic revenue is 0% across all regions as there are no active sales or operations. The company's assets are concentrated in Kerala, India.

Profitability Margins

Net Profit Margin is not applicable due to zero revenue. The company reported a Net Loss of INR 18.75 Lacs for H1 FY26, compared to a loss of INR 38.74 Lacs in FY25. The persistent losses are driven by fixed costs like employee benefits and listing fees without corresponding income.

EBITDA Margin

EBITDA is negative. Operating loss before working capital changes stood at INR 17.60 Lacs for the half-year ended September 30, 2025, reflecting a slight improvement from the INR 36.34 Lacs loss in the previous full year due to reduced administrative spending.

Capital Expenditure

Capital expenditure is minimal at INR 0.00 Cr. Depreciation provided was INR 1.14 Lacs for H1 FY26. The company has not invested in new fixed assets as the production unit is currently non-operational.

Credit Rating & Borrowing

Credit rating is not disclosed. Total borrowings increased to INR 1,283.40 Lacs as of September 30, 2025, from INR 1,256.95 Lacs in March 2025. These are primarily interest-free or low-cost loans from the Managing Director to fund day-to-day survival expenses.

⚙️ Operational Drivers

Raw Materials

Not applicable as the production unit is closed; historically required raw materials for chemical and hydro power production represent 0% of current costs.

Import Sources

Not applicable; no procurement is currently taking place due to the cessation of manufacturing activities.

Key Suppliers

Not applicable; the company has no active suppliers for manufacturing. Current 'suppliers' are limited to service providers for statutory compliance and listing.

Capacity Expansion

Current installed capacity is effectively 0% utilized as the production unit is closed. There are no disclosed plans for capacity expansion in the current financial documents.

Raw Material Costs

Raw material costs are INR 0.00, representing 0% of revenue. No procurement strategy is active as production is suspended.

Manufacturing Efficiency

Capacity utilization is 0%. Manufacturing efficiency metrics are not applicable as no production has occurred during the period.

Logistics & Distribution

Distribution costs are 0% of revenue as no final products are being shipped to customers.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company lacks a clear operational growth strategy as the production unit is closed. Management expresses 'confidence' in future growth, but current activity is limited to meeting day-to-day expenses through promoter loans and maintaining listing status.

Products & Services

The company historically produced chemicals and hydro power, but currently has no final products or services being sold to customers.

Brand Portfolio

TECIL

New Products/Services

No new product launches are planned; expected revenue contribution from new products is 0%.

Market Expansion

There are no active market expansion plans as the company is focused on basic corporate survival and compliance.

Market Share & Ranking

The company holds 0% market share in its historical segments due to operational dormancy.

Strategic Alliances

No strategic alliances or joint ventures are currently active.

🌍 External Factors

Industry Trends

The chemical industry is seeing a shift toward sustainable practices, but TECILCHEM is currently disrupted by its own internal operational and regulatory hurdles, leaving it unable to participate in industry growth.

Competitive Landscape

The company is losing ground to all active competitors in the chemical and power sectors who are expanding while TECILCHEM remains closed.

Competitive Moat

The company currently has no sustainable moat. Its historical assets in hydro power and chemicals are aging and non-functional, providing no competitive advantage in the current market.

Macro Economic Sensitivity

Highly sensitive to state government policies in Kerala regarding land and industrial operations. Inflation impacts the cost of maintaining the dormant plant and statutory fees.

Consumer Behavior

Not applicable as the company has no consumer-facing operations or active B2B sales.

Geopolitical Risks

Geopolitical risks are low as the company is domestic-focused and currently inactive, though any future restart would depend on domestic chemical demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Kerala state labor and environmental laws. The production unit is currently closed following actions by the Department of Revenue, Government of Kerala.

Environmental Compliance

ESG compliance systems are stated to be in place to monitor environmental laws, but specific costs are not disclosed.

Taxation Policy Impact

The company has a 0% effective tax rate for the period due to reported losses and lack of taxable income.

Legal Contingencies

The company faces significant regulatory hurdles regarding its production unit closure. While specific case values are not provided, the 'Other Equity' shows a deficit of INR 3,740.63 Lacs, indicating deep financial distress linked to long-term legal and operational halts.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to restart the production unit, with a 100% impact on the company's status as a going concern. Continued reliance on promoter loans for survival is a major financial risk.

Geographic Concentration Risk

100% of assets and regulatory risks are concentrated in Kerala, India.

Third Party Dependencies

Critical dependency on the Managing Director for funding; 100% of current liquidity is derived from related-party loans (INR 1,283.40 Lacs).

Technology Obsolescence Risk

High risk of technology obsolescence as the manufacturing plant has been closed for an extended period, likely requiring massive upgrades to meet modern standards.