💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment (Specialty Chemicals/FMCG). Revenue from operations for FY 2024-25 was INR 45.84 Cr, representing a decrease of 3.85% compared to INR 47.67 Cr in the previous year. For the half-year ended September 30, 2025, revenue stood at INR 36.05 Cr.

Geographic Revenue Split

Not disclosed in available documents. The company is headquartered in Ahmedabad, Gujarat.

Profitability Margins

Net Profit Margin for FY 2024-25 was 3.52% (INR 1.61 Cr), an improvement from 2.60% (INR 1.24 Cr) in FY 2023-24. This growth was achieved despite lower operational income, primarily due to a 29.88% increase in Profit After Tax (PAT) attributable to shareholders.

EBITDA Margin

EBITDA Margin for FY 2024-25 was 4.74% (INR 2.17 Cr), a significant decline from 9.80% (INR 4.67 Cr) in the previous year. This 53.52% drop in core profitability was driven by a challenging external environment and restrictive monetary policies.

Capital Expenditure

The company raised INR 20.57 Cr through an Initial Public Offer (IPO) for business utilization. Property, plant, and equipment stood at INR 0.37 Cr as of March 31, 2025, compared to INR 0.43 Cr in the previous year.

Credit Rating & Borrowing

Finance costs for FY 2024-25 were INR 0.91 Cr, representing approximately 1.9% of total income. For the half-year ended September 30, 2025, finance costs were INR 0.36 Cr.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents. Total cost of materials consumed was INR 13.47 Cr and purchases of stock-in-trade were INR 30.85 Cr in FY 2024-25.

Raw Material Costs

Raw material costs and stock-in-trade purchases totaled INR 44.32 Cr in FY 2024-25, accounting for approximately 96.7% of revenue from operations. This high cost ratio significantly impacts operating margins.

📈 Strategic Growth

Growth Strategy

The company aims to boost its stance in the specialty chemicals sector and broaden its product line to include FMCG and IMCG products. Growth will be achieved by gaining access to new markets and leveraging technological know-how to spur innovation.

Products & Services

Specialty chemicals, FMCG products, and IMCG products.

New Products/Services

Production of FMCG and IMCG products is being initiated to broaden the product line and enter new market segments.

Market Expansion

The company is targeting new markets through technological know-how and product diversification into consumer goods.

Strategic Alliances

The company holds a significant investment in Rishit Polysurf LLP, which contributed INR 0.38 Cr to profits in H1 FY 2025-26.

🌍 External Factors

Industry Trends

The specialty chemicals industry is evolving towards broader product lines including FMCG. YCCL is positioning itself by diversifying into these segments to mitigate sector-specific volatility.

Competitive Moat

The company's moat is built on technological know-how and its ability to access new markets through its subsidiary LLP, though sustainability is challenged by its small scale (Paid-up capital < INR 10 Cr).

Macro Economic Sensitivity

The company is highly sensitive to restrictive monetary policies and global economic shifts, which impacted EBITDA by 53.52% YoY.

Geopolitical Risks

Challenging external environments and restrictive policies are cited as key external risks affecting the specialty chemicals sector.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with Ind AS and the Companies Act 2013. It is currently exempt from certain SEBI corporate governance provisions (Regulations 17-27) due to its paid-up capital being below INR 10 Cr and net worth below INR 25 Cr.

Taxation Policy Impact

The effective current tax rate for FY 2024-25 was approximately 10.6% (INR 0.20 Cr tax on INR 1.91 Cr PBT).

Legal Contingencies

The company has disclosed pending litigations in Note 34 of its standalone financial statements, though specific case values were not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Key uncertainties include the potential for material misstatements due to fraud or error and the risk that internal financial controls may become inadequate due to changing business conditions.

Technology Obsolescence Risk

The company is addressing technology risks by seeking new technological know-how to spur innovation in its specialty chemicals and FMCG lines.

Credit & Counterparty Risk

Trade receivables increased by INR 6.50 Cr in the half-year ended September 2025, indicating rising credit exposure to customers.