Volume recovery offset by margin compression; profitability slides

Revenue grew 27.4% YoY to ₹1,094 Cr; Q2 volume growth corroborates claim

PAT ₹115 Cr vs ₹123.4 Cr prior year (-6.9% YoY); PBT ₹153 Cr vs ₹158 Cr (-3.2%)

Q2 PBT margin ~14%, H1 PBT ~300 Cr on ₹1,978 Cr revenue (~15%); achievable but tight

H1 volume 151,106 MT vs 157,465 MT prior year (-4% YoY); Q2's 28% offset Q1 weakness

Schemes, discounts, product mix shift to non-agri offsetting price increases; structural dependency

Q2 volume +28% YoY vs Q1 weakness; destocking recovery from channel as flagged in prior call

Sub-15% EBITDA maintained but tested by margin compression (Q2 ~14% PBT margin vs 15-16% historically)

Board yet to decide on INR150 Cr capex deployment; no FY28 capacity timeline given

Reliance on schemes/mix shifts to defend margins; no structural pricing-power improvements signaled

Q1 inventory at higher PVC prices consumed in Q2; creates a time lag in realization. Also, schemes and discounts running in market to remain competitive, offsetting price gains.

Q2 agri/non-agri 60-40; fitting 7-8% of volume. Non-agri growth offsetting some agri margin, but offsetting via better realization on larger non-agri volumes.

Q1 weakness from Q2 FY26 volume and channel destocking; Q2 recovery from destocking completion. October was good. H2 traditionally strong (Jan-May period). No quantified FY27 growth guidance given.

Board decision pending on form/shape of capex deployment. Debottlenecking exercises underway; higher-capacity extruder to replace lower-capacity units. Timing deferred; no firm timeline given.

Three-year-old Board direction on monetization; no near-term decision yet. Board will take call on timing. Dividends already paid; shareholder reward ongoing but no special distributions planned.

El Niño impact not fully realized yet; expected from November onwards. Tractor bookings and 2-wheeler bookings remain elevated (14-15%, 2-wheeler higher)—mixed signals. Margin on farmer income also a constraint but offset by input demand.

Total capacity 520 kt (pipe 425 kt, fitting 95 kt). Overall utilization ~67-70%. Sufficient headroom for current year and next. Capacity addition from debottlenecking underway.

Middle East situation impacting all crude-oil downstream industries. Teams have re-established supply chains from alternative sources. EDC, VCM 100% imported into India; no direct domestic sourcing.

Awaiting Ministry of Finance decision. CVD only on China region; MIP for all countries. If CVD implemented, may replace MIP. Outcome uncertain. Case strength is debatable.

PVC ₹771/MT, PVC/EDC delta $455 on international market. EDC $450-500, VCM $900-950, ethylene $1,200-1,150. Prices elevated; availability tight due to geopolitical issues.

No quantified FY27 revenue target given. H1 +4% YoY; Q2 strong recovery but H2 hinges on PVC stabilization

Q2 PBT margin ~14%, H1 ~15%; achievable but tight. Dependent on H2 realization and PVC pricing normalization; scheme reliance ongoing

Board yet to finalize form/shape; timing deferred. Includes higher-capacity extruder replacement and routine maintenance. No clear timeline for capex deployment decisions

PVC prices, EDC, VCM, ethylene 100% imported. Q2 margin compression from Q1 high-cost inventory. Scheme reliance to offset pricing power loss.

Q2 28% volume growth from destocking recovery, not organic demand growth. H1 volume still -4% YoY. Risk: H2 normalization if destocking completes.

Middle East tensions impacting petrochemical sourcing, shipping rates. EDC/VCM 100% imported; no domestic alternative. Risk: supply tightness, cost escalation.

El Niño, water scarcity, state relief programs constraining farmer income; agri is 60% of volume. Risk: volume decline in H2 if farm incomes weaken.

Board has not finalized capex deployment form/timing. INR150 Cr planned but no end-use clarity or timeline. Risk: delayed capacity addition, lost growth opportunity.