28-Oct-2026 09:54:46
AMBANI ORGOCHEM Q2 CONCALL : H1 REVENUE JUMPS 55%, EBITDA GROWS 43%; MANAGEMENT EXPECTS STRONGER H2, TARAPUR EXPANSION BENEFITS FROM FY28 & DAHEJ GROWTH IN FY29–FY30
• MANAGEMENT EXPECTS H2 FY27 REVENUE & PROFITABILITY TO OUTPERFORM H1, SUPPORTED BY STRONG DEMAND, CAPACITY EXPANSION & NEW SPECIALTY CHEMICAL PRODUCTS • MANAGEMENT EXPECTS TARAPUR EXPANSION TO CONTRIBUTE ADDITIONAL REVENUE FROM FY28, WHILE DAHEJ EXPANSION IS EXPECTED TO DRIVE STRONGER PROFITABILITY DURING FY29–FY30 • MANAGEMENT TARGETS COMPLETION OF ₹15–20 CR TARAPUR EXPANSION BY Q4 FY27, INCREASING ACRYLIC COATINGS & ADHESIVES CAPACITY FROM 2,000 TO 4,500 TONNES PER MONTH • MANAGEMENT PLANS TO COMPLETE THE NEXT PHASE OF DAHEJ EXPANSION DURING FY28, WITH HIGHER CAPACITY UTILISATION & SPECIALTY PRODUCT CONTRIBUTION EXPECTED SUBSEQUENTLY • MANAGEMENT PLANS TO QUADRUPLE SALICYLIC ACID CAPACITY FROM 50 TO 200 TONNES PER MONTH, SUPPORTED BY DEVELOPMENT OF OVER 12 DOWNSTREAM SALICYLATE MOLECULES • MANAGEMENT EXPECTS TARAPUR & DAHEJ EXPANSIONS TO BE EBITDA-ACCRETIVE FROM INITIAL OPERATIONS, SUPPORTED BY OPERATING LEVERAGE & HIGHER-MARGIN SPECIALTY PRODUCTS • H1 FY27 REVENUE JUMPED 54.87% YOY TO ₹171.22 CR, WHILE EBITDA GREW 43% TO ₹11.32 CR • H1 FY27 NET PROFIT INCREASED TO APPROXIMATELY ₹3.45 CR FROM ₹19.07 LAKH YOY, REFLECTING A SIGNIFICANT IMPROVEMENT IN PROFITABILITY • H1 OPERATING CASH FLOW TURNED POSITIVE AT ₹1.88 CR, COMPARED WITH AN OUTFLOW OF ₹8.99 CR IN THE PREVIOUS YEAR • TARAPUR FACILITY IS OPERATING AT APPROXIMATELY 100% CAPACITY UTILISATION, WITH MANAGEMENT INDICATING THAT EXISTING CUSTOMER DEMAND EXCEEDS AVAILABLE SUPPLY • DAHEJ PEROXIDE CAPACITY UTILISATION REMAINS AROUND 40%, IMPACTED BY GEOPOLITICAL SHIPPING RESTRICTIONS & DISRUPTIONS TO GCC EXPORTS • COMPANY HAS DEVELOPED TWO NEW PEROXIDE MOLECULES, DTA & DTBH, WHILE FIVE ADDITIONAL MOLECULES ARE UNDER DEVELOPMENT FOR POLYMERS, RUBBER & SPECIALTY RESINS • MANAGEMENT EXPECTS BACKWARD INTEGRATION TO REDUCE SELECTED RAW MATERIAL COSTS BY APPROXIMATELY 40–50% COMPARED WITH EXTERNAL PROCUREMENT QUOTATIONS • COMPANY HAS PROPOSED ISSUANCE OF 43.95 LAKH PREFERENTIAL WARRANTS, INCLUDING 30 LAKH PROPOSED FOR THE MANAGING DIRECTOR, TO SUPPORT FUTURE EXPANSION SUBJECT TO APPROVALS • MANAGEMENT REMAINS POSITIVE ON CAPACITY EXPANSION, SPECIALTY CHEMICALS & BACKWARD INTEGRATION, BUT LOW DAHEJ UTILISATION, GCC SHIPPING DISRUPTIONS, PROJECT EXECUTION & FUNDING REQUIREMENTS REMAIN KEY RISKS
AMBANI ORGOCHEM LIMITED