Uneven growth amid macro headwinds—Chemicals strong, agri weak

₹33% YoY growth confirmed; PBDIT +24% to ₹274 Cr despite elevated input costs

Revenue +2% YoY; PBDIT +22% to ₹30 Cr on better mix and realization

Order intake +4% (lower than expected per Amit); total order book ~₹1,000 Cr. Termed 'strong' but intake soft due to West Asia crisis.

Input costs rose (elevated energy, LNG prices). Yield/mix gains offset in some segments. Margin compression in Bioseed, Ethanol vs. prior year.

PAT includes ₹474 Cr one-time tax reversal + ₹79 Cr asset sales. Adjusted PAT ₹147 Cr (+28% YoY) is true operating growth; reported PAT misleading.

Government waived customs duty temporarily; Chinese imports surged. Volume fell 25% YoY. Government now reinstated duty + MIP (₹766/MT). Near-term demand remains soft (Q2 expected soft); margin under pressure.

Q1 FY27 PBDIT –₹9 Cr vs +₹42 Cr Q1 FY26. Monsoon delay cut sowing 15–20%; excess seed inventory from 2025-26 high productivity now pressuring margins. Management sees 'large part lost' for FY27.

Signed 58 MW deal with Serentica for Bharuch. Total 176 MW planned (50% already running). Improves energy security, decarbonization, long-term cost competitiveness. Mechanism concrete, but revenue impact on FY27 margins incremental.

Al chloride, Ca chloride at Bharuch in final pre-commissioning; commercial start Q2. Chlorine integration target 50% (then 85% with customer ties). Supports margin improvement but execution dependent.

Sugar prices ~₹4,450/quintal, expected firm. Inventory fell to 20.8 lakh quintals (vs 27.7 lakh prior year). Global sugar market moving to deficit (2026-27). Supportive, but ethanol allocation policy remains uncertain and sugarcane cost volatility high.

ECU currently just below ₹30,000; expect this range or higher (cautious). Chlorine currently –₹7,000 to –₹8,000 (negative margin). Forward guidance hard; geopolitical uncertainty.

Three drivers: strong farmer reach, R&D new products (better value to farmer), built credibility. July monsoons good in pockets, but sowing down 15–20% overall. Difficult to project; focused on product quality and relationships.

Yes, optimizing margins dynamically. Currently maize margins good; can go up to 260 KLD grain. But no capex to grow capacity. Depends on government policy and relative margins.

Six-year reconciliation of tax filing vs. books (deferred). ITAT positive order triggered recognition. INR376 Cr is MAT credit (cash-future). Tax bracket moved 35% → 25%; with MAT, effective tax rate ~19% for 5–10 years (cash outgo, P&L still 25%).

Too early to predict given current monsoon. Will comment next quarter.

Difficult to say, but should be firm for next couple of months.

India urea regulated by FICC rules; government sets return. High intl prices increase govt subsidy burden, not domestic mfg margin. Govt typically pays subsidy on time. Not impacted by intl prices (pass-through); only cash-flow timing risk.

Grow consistently. Invested in all except Urea and Cement. Focus on value-added (epichlorohydrin, epoxy, Al chloride). Buying stakes in suppliers/buyers for integration (e.g., epoxy factory Oct 2025, DNV stake in Fenesta). Bullish on India; cost-competitive manufacturing.

We are amongst lowest-cost producers. Continuous investment: 2019 new plant, 2024–25 120 MW coal plant (efficient, closed inefficient), now 176 MW renewable. Power cost varies by location, source, product; not prudent to disclose single number.

Chlorine integration crucial. After current projects (Al chloride, Ca chloride), ~50% captive consumed. Strong partnerships with customers via pipelines at Bharuch + regional tie-ups → ~85% chlorine will be tied up. No PVC capex announced.

Yes, lower than expected due to West Asia crisis (decision delays). Total order book ~₹1,000 Cr is robust. Business growing; setting up new platforms (wooden doors). Very bullish.

Debt increase over full year (Jun 25 to Jun 26): two acquisitions ~₹450 Cr + capex ~₹1,000 Cr. No major new capex announced beyond ongoing ₹1,000 Cr for FY27. Debt/EBITDA ~1.1x.

Similar levels, maybe ₹200 Cr reduction. ₹1,000 Cr capex ongoing. Sugar season dynamics will matter (inventory). Governed by debt/EBITDA ≤ 1.5x (not breach). AA+ rating at current levels.

Clear decision to proceed. Working on multiple SBU structure issues. Objective: file govt application in FY27. Process takes time; exact timeline difficult to give now.

Large part of demand lost. July monsoon good in pockets only; patchy, excessive some places, dry others. Sowing in our regions still 15–20% lower. Overall monsoon recovery minimal for our portfolio.

Prior call aspiration, not numeric. Q1 results show Chemicals +33% (strong), Fenesta +22% (solid), SFS +2% (soft). No FY27 revenue CAGR or absolute target given.

OPM 11.0% Q1 reflects input cost inflation (LNG, energy) offset by Chemicals mix. No FY27 target set. Dependent on monsoon, geopolitical, energy cost trajectory.

Communicated clearly. Includes downstream chemical projects (Al/Ca chloride Q2), renewable energy (176 MW Bharuch+Kota), Fenesta expansion. Debt/EBITDA to stay ≤1.5x.

Bioseed and SFS highly exposed to Kharif sowing acreage. Q1 sowing down 15–20%; if monsoon deteriorates further, full-year agri EBITDA could contract significantly.

PVC volumes down 25% YoY despite price +22%. China exports surged when duty waived; though duty reinstated + MIP (₹766/MT) now in place, import pressure persists. Q2 demand expected soft.

West Asia conflict drove energy & freight volatility. LNG prices spiked (urea PBDIT fell ₹15 Cr), freight elevated, feedstock movements disrupted ECH/epoxy. Chlorine now negative ₹7–8k/MT (margin pressure on caustic integration).

2025-26 high productivity created excess seed inventory. Q1 sowing shortfall prevented clearance. If Kharif demand remains weak, inventory risk (obsolescence, valuation haircut) grows.

₹1,000 Cr FY27 capex includes downstream chemical projects (Al/Ca chloride, expected Q2 startup) and renewable energy (176 MW, partial commissioning). Any delay defers margin uplift; cost overruns would compress ROCE.