💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Colours and Chemicals). Total income for the half-year ended September 30, 2025, was INR 7,622.47 Lakhs. Comparative figures for the previous half-year (September 30, 2024) were reported at INR 14,917.36 Lakhs, indicating a significant period-on-period decline of approximately 48.9% in reported revenue.

Geographic Revenue Split

Not disclosed in available documents. The company is headquartered in Mumbai, Maharashtra, but specific regional revenue contributions are not provided.

Profitability Margins

Net Profit Margin for H1 FY26 was 1.95% (INR 149.05 Lakhs profit on INR 7,622.47 Lakhs revenue). This is a decline from the 2.89% margin (INR 419.20 Lakhs profit) reported for the six months ended March 31, 2025. The decline in margins is driven by lower operating leverage as revenue decreased.

EBITDA Margin

Operating Profit before working capital changes for H1 FY26 was INR 149.73 Lakhs, representing an operating margin of approximately 1.96%. This is a sharp decrease from the full-year FY25 operating profit of INR 901.01 Lakhs, reflecting increased pressure on core profitability.

Capital Expenditure

The company utilized INR 330.21 Lakhs for General Corporate Purposes from IPO proceeds. Specific historical or future fixed asset expansion plans (CapEx) are not detailed beyond the maintenance of existing property, plant, and equipment records.

Credit Rating & Borrowing

The company utilized INR 1,000 Lakhs from IPO proceeds to fully or partially repay outstanding borrowings. Interest expenses for H1 FY26 were INR 25.40 Lakhs, a significant reduction from the INR 113.61 Lakhs paid in FY25, following the debt repayment strategy which lowers the overall cost of capital.

⚙️ Operational Drivers

Raw Materials

Specific chemical names are not listed, but the company deals in 'Colours and Chemicals'. Raw material costs are a primary driver, as the company operates in a single segment where chemical input prices directly dictate gross spreads.

Capacity Expansion

Current capacity is not specified in units. However, the company has allocated INR 1,500 Lakhs of IPO funds for working capital requirements, of which only INR 300 Lakhs (20%) has been utilized as of September 30, 2025, suggesting significant headroom for operational scaling.

Raw Material Costs

Not explicitly broken out as a percentage of revenue in the provided half-year summary, but the company noted an increase in inventories of INR 61.79 Lakhs for H1 FY26, suggesting a buildup of stock or rising procurement costs.

📈 Strategic Growth

Growth Strategy

The strategy focuses on deleveraging and liquidity enhancement. By utilizing INR 1,000 Lakhs for debt repayment, the company has reduced interest outflows. The remaining growth is expected to be fueled by the INR 1,200 Lakhs pending utilization in working capital, which will allow the company to take on larger orders and expand its market presence in the chemical sector.

Products & Services

Colours and Chemicals (pigments, dyes, or chemical intermediates used in industrial applications).

Brand Portfolio

UNILEX.

Market Expansion

The company is listed on the NSE SME platform, aiming to use its increased visibility and IPO funds to expand its reach, though specific target regions are not named.

🌍 External Factors

Industry Trends

The chemical industry is shifting toward more stringent environmental compliance and specialized applications. As an SME-listed entity, UNILEX's positioning depends on its ability to maintain low overheads while scaling its working capital-intensive trading or manufacturing operations.

Competitive Landscape

The company operates in a fragmented chemical market with competition from both large-scale manufacturers and small-scale traders.

Competitive Moat

The company's moat is currently limited to its established presence in the SME chemical space and its improved balance sheet following the INR 3,132 Lakhs IPO. Sustainability depends on effectively deploying the remaining INR 1,501.79 Lakhs in unutilized funds.

Macro Economic Sensitivity

The business is sensitive to industrial production cycles and chemical industry demand. A slowdown in manufacturing would reduce demand for the company's colour and chemical products.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with chemical handling and safety standards. It is also subject to SEBI (LODR) Regulations, though it enjoys exemptions from certain corporate governance provisions (Regulations 17 to 27) due to its listing on the SME Exchange.

Taxation Policy Impact

Current tax expense for H1 FY26 was INR 45.92 Lakhs, representing an effective tax rate of approximately 22.9% on PBT of INR 200.33 Lakhs.

Legal Contingencies

The company has disclosed pending litigations in Note 33 of its financial statements. Additionally, the statutory auditor reported that director remuneration paid during the year was not in accordance with the provisions of Section 197 of the Companies Act, 2013.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the significant drop in reported revenue (approx. 48.9% YoY for the half-year) and the non-compliance regarding director remuneration, which may signal internal governance risks.

Credit & Counterparty Risk

Trade receivables management is a risk; however, the company has not reported significant bad debt write-offs in the provided snippets. Interest income of INR 104.23 Lakhs suggests significant cash balances are held in interest-bearing accounts.