Epigral Ltd Share Price – NSE  / BSE

Chemicals, Small Cap

Crisil Ratings stated that the rating continues to reflect Epigral?s healthy business risk profile supported by continued diversification in revenue streams, healthy operating margin and improving demand prospects. The rating also factors in a comfortable financial risk profile.

These strengths are partially offset by the company?s high albeit reducing dependence on the intensely competitive chlor alkali industry, exposure to regulatory risks, vulnerability of operating margin to fluctuations in caustic soda prices and exposure to project implementation risks.

Crisil Ratings said that the company's revenue remained largely flat at Rs 2,527 crore in fiscal 2026 due to subdued demand from the construction and infrastructure sectors following the extended monsoon which affected construction activities thereby impacting offtake of few key products such as chlorinated polyvinyl chloride (CPVC) and epichlorohydrin (ECH) which is strongly linked to the sector.

Revenue is expected to grow by 13-15% in fiscal 2027, aided by recovery in volumes, ramp-up of expanded capacities in CPVC, ECH and chlorotoluene, and improved realizations amid elevated raw material prices. Over the medium term, growth is expected to be driven by steady contributions from existing operations and incremental revenues from expanded CPVC and ECH capacities.

The company's operating margin moderated to 22.4% in fiscal 2026 from 28.2% in fiscal 2025, primarily due to a sharp decline in realizations of key products, particularly during the first nine months of the year. While realizations are expected to improve in fiscal 2027 and operating leverage benefits are expected to accrue, operating margins are likely to remain largely stable due to inflationary pressures, elevated energy and raw material costs, and a lag in passing on higher input costs to customers.

Over the medium term, margins are expected to improve gradually, supported by normalization in input costs, better realizations and operating leverage benefits from the ramp-up of expanded capacities.

The agency further said that Epigral?s financial risk profile remained strong supported by healthy capital structure and strong debt protection metrics.

Debt protection metrics continued to remain strong despite moderation in profitability and increase in interest expenses during fiscal 2026, with interest coverage at 8.07 times compared with 13.65 times in fiscal 2025.

The increase in interest expense was largely due to mark-to-market impact on foreign currency borrowings following sharp depreciation in rupee during the year. Interest coverage is expected to improve and sustain at healthy levels over the near to medium term aided by expected improvement in profitability and reduction in debt.

Epigral is a leading integrated manufacturer of chemicals in India. Epigral is the largest manufacturer of CPVC in India and is also the first to set up an Epichlorohydrin plant and Chlorotoluenes value chain plant, in India. Along with ECH and CPVC, Epigral is a leading manufacturer of caustic soda, caustic potash, chloromethanes, hydrogen peroxide, chlorine and hydrogen.

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Epigral announced that the 19th Annual General Meeting(AGM) of the company will be held on 8 June 2026.

Epigral has fixed 01 June 2026 as record date for payment of final dividend.

The company?s standalone net profit soared 109.27% to Rs 81.93 crore in Q4 FY26, compared with Rs 39.15 crore in Q3 FY26. Revenue from operations jumped 23.29% QoQ to Rs 736.16 crore in Q4 FY26, on account of volume growth and improved realization

Year on year basis, the company?s standalone net profit declined 15.2% while revenue from operations jumped 17.29% in Q4 FY26.

Profit before tax (PBT) stood at Rs 110.52 crore, up 102.42% QoQ and down 15.67% YoY.

In Q4 FY26, EBITDA climbed 64% QoQ to Rs 169 crore, while EBITDA margin improved to 23% in Q4 FY26 from 17% in the previous quarter.

During the quarter, sales volume grew 15% QoQ, with overall plant utilisation exceeding 80%.

The contribution from the Derivatives & Specialty business increased to 54% in Q4 FY26 from 52% in Q3 FY26, while the Chlor-Alkali segment?s share declined to 46% in Q4 FY26 from 48% in Q3 FY26.

For the full year, standalone net profit fell 6.64% to Rs 333.01 crore, while revenue from operations edged down 0.90% to Rs 2,527.18 crore in FY26 over FY25.

Maulik Patel, chairman and managing director ? Epigral said: ?In Q4 FY26, we delivered record revenue of Rs 736 crore, driven by a 15% sequential increase and 14% year-on-year growth in volumes. This performance reflects strong demand conditions and a full recovery post scheduled maintenance in Q3. Improved utilization levels and stabilization in raw material costs supported EBITDA margins of 23%.

While FY26 saw some impact due to an extended monsoon and planned maintenance in the first half, demand recovery began in November and strengthened through Q4. We expect this momentum to continue into FY27, subject to global macro conditions

Our diversified product portfolio continues to provide resilience amid geopolitical uncertainties, including developments in West Asia. At the same time, our ongoing capex projects for Epichlorohydrin and CPVC expansion are progressing as planned and within budget. Once commissioned, these plants will address India?s growing demand and enhance our financial performance.?

Meanwhile, the company?s board recommended a dividend of Rs 5 per equity share of face value of Rs 10 each for the Financial Year 2025-26.

Epigral, formerly known as Meghmani Finechem, is a leading integrated manufacturer of chemicals in India. It is also a leading manufacturer of caustic soda, caustic potash, chloromethanes, hydrogen peroxide, chlorine and hydrogen. The company?s Dahej facility is a backward and forward integrated and automated complex with a well-planned infrastructure.

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