SK Minerals & Additives Ltd (544584)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, SK Minerals' revenue was ₹64.4 Cr (+88.6% year on year, -69.0% on the previous quarter), and net profit ₹3.7 Cr (+124.4% year on year); the operating margin was 10.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹64.4 | +88.6% | -69.0% |
| Operating profit | ₹6.9 | +115.5% | -65.6% |
| Net profit | ₹3.7 | +124.4% | -66.3% |
| EPS (₹) | 3.03 | +65.6% | -66.6% |
| Operating margin | 10.7% | — | — |
📢 Recent Corporate Announcements
At its 4th Annual General Meeting held on September 30, 2026, SK Minerals & Additives approved key leadership changes and auditor appointments. Members approved the regularisation and redesignation of promoter Mrs. Sunita Rani as Whole-time Director for a 3-year term. In addition, Mr. Rohit Jindal and Mr. Shubham Jindal were redesignated from Executive Directors to Whole-time Directors for 3-year terms, along with remuneration revisions. M/s Lal Ghai & Associates was also appointed as Secretarial Auditor for 5 consecutive years from FY27 to FY31.
- Appointment of M/s Lal Ghai & Associates as Secretarial Auditor for 5 years (FY26-27 to FY30-31)
- Redesignation of Mr. Rohit Jindal as Whole-time Director for a period of 3 years effective September 30, 2026
- Redesignation of Mr. Shubham Jindal as Whole-time Director for a period of 3 years effective September 30, 2026
- Regularisation and redesignation of Mrs. Sunita Rani as Whole-time Director for a period of 3 years
SK Minerals & Additives Limited has entered into a Technical and Commercial Cooperation and Collaboration Agreement with Italian technology company iPOOL s.r.l. on September 4, 2026. The partnership focuses on joint R&D, product formulation, and commercialization of advanced flame-retardant additives and compounds. Target sectors include wire & cable, electric vehicles (EV), and automotive applications. Financial terms, capex requirements, and revenue expectations were not disclosed in the filing.
- Agreement executed on 04.09.2026 with Italy-based iPOOL s.r.l. (founded in 2011 as a CNR Pisa spin-off)
- Focuses on joint R&D and commercial development of halogen-free flame-retardant additives and compounds
- Targets high-growth applications in wire & cable, EV, and automotive manufacturing
- Specific financial outlays, revenue share, and commercial terms were not disclosed
SK Minerals & Additives has approved the allotment of 54,93,000 convertible warrants on a preferential basis at an issue price of Rs. 397 per warrant, amounting to a total fundraise of Rs. 218.07 Cr. The company has collected 25% upfront (Rs. 99.25 per warrant or ~Rs. 54.52 Cr), with the balance 75% payable upon conversion within 18 months. The warrants are allotted to 85 investors, including 28,00,000 warrants to promoters and 26,93,000 to non-promoters. Upon full conversion, promoter holding will dilute from 73.53% to 66.54%, while expanding the equity share base from 1.22 Cr shares to 1.77 Cr shares.
- Allotment of 54,93,000 convertible warrants at Rs. 397 per warrant (including Rs. 387 premium), totaling Rs. 218.07 Cr.
- Upfront receipt of 25% subscription money amounting to Rs. 99.25 per warrant (~Rs. 54.52 Cr).
- Promoters allotted 28,00,000 warrants (50.97% of issue), with non-promoters receiving 26,93,000 warrants across 77 allottees.
- Promoter shareholding to dilute from 73.53% pre-issue to 66.54% post full conversion.
- Warrant conversion window is valid for up to 18 months from the date of allotment.
SK Minerals & Additives Limited has informed the exchanges that its Board of Directors will meet on Monday, August 24, 2026, to consider and approve the allotment of convertible warrants on a preferential basis. This allotment follows approval granted via a Special Resolution at the Extra-Ordinary General Meeting held on July 9, 2026. The preferential issue is being conducted under SEBI (ICDR) Regulations, 2018. Key details regarding the exact issue quantum, pricing, and allottees will be clarified upon the conclusion of the board meeting.
- Board of Directors meeting scheduled for Monday, August 24, 2026.
- Meeting convened to consider and approve allotment of Convertible Warrants on a preferential basis.
- Proposed allotment follows shareholder approval at the EGM held on July 09, 2026.
- Issuance governed by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
SK Minerals & Additives Ltd has received in-principle approval from BSE for the issuance of 55,00,000 warrants on a preferential basis. These warrants are convertible into equity shares at a minimum price of Rs 397 each, representing a total potential fundraise of at least Rs 218.35 Cr. This capital infusion is highly significant, amounting to approximately 273% of the company's current net worth of Rs 80 Cr. The warrants will be issued to both promoter and non-promoter groups.
- Issuance of 55,00,000 warrants convertible into equity shares of Rs 10 each
- Minimum issue price fixed at Rs 397 per warrant
- Total minimum fundraise value estimated at Rs 218.35 Cr
- BSE in-principle approval received via letter dated August 10, 2026
- Fundraise represents ~41% of TTM revenue (Rs 530 Cr)
SK Minerals & Additives Ltd has appointed Mrs. Sunita Rani as an Additional Director in the Executive Category, effective August 10, 2026. Mrs. Rani is a promoter of the company and the mother of both the Managing Director, Mr. Mohit Jindal, and Director, Mr. Rohit Jindal. She brings 15 years of experience in the specialty chemicals industry, having previously operated M/s SK Minerals as a sole proprietorship. This appointment strengthens the promoter family's direct oversight as the company manages a TTM revenue of Rs 530 Cr and a debt-to-equity ratio of 1.25.
- Appointment of Mrs. Sunita Rani as Executive Director effective August 10, 2026
- Mrs. Rani possesses 15 years of experience in the specialty chemicals industry
- She is the mother of the current Managing Director and another board member
- Company maintains a high promoter holding of 73.53% as of March 2026
- The appointment is subject to shareholder approval at the upcoming Annual General Meeting
SK Minerals & Additives Ltd held a board meeting on August 10, 2026, to approve the unaudited financial results for the quarter ended June 30, 2026. The company, which saw a significant revenue jump to Rs 530 Cr (TTM), also appointed Mrs. Sunita Rani as an Additional Director in the Executive category. Furthermore, the board decided to establish an in-house trust for CSR activities and revised the effective date for executive remuneration increases to the date of the upcoming AGM. The auditor provided an unmodified opinion on the results.
- Approved unaudited financial results for the quarter ended June 30, 2026, with an unmodified auditor opinion.
- Appointed Mrs. Sunita Rani (DIN: 08938748) as Additional Director (Executive) effective August 10, 2026.
- Revised the effective date for remuneration increases for 3 Executive Directors (Mohit, Rohit, and Shubham Jindal) to the upcoming AGM date.
- Established an in-house trust as the implementing agency for Corporate Social Responsibility (CSR) activities.
- The company maintains a high TTM revenue of Rs 530 Cr compared to FY25 revenue of Rs 212 Cr.
SK Minerals & Additives has provided a detailed breakdown for its proposed Rs 218.35 Cr preferential issue of convertible warrants following a BSE query. The company has earmarked 85% of the proceeds (Rs 185.60 Cr) for expansion and growth, with a heavy focus on inorganic opportunities (Rs 160.60 Cr) such as acquisitions and strategic investments. This fundraise is highly material, representing approximately 273% of the company's current net worth (Rs 80 Cr) and 41% of its TTM revenue (Rs 530 Cr). The remaining 15% (Rs 32.75 Cr) is allocated for general corporate purposes.
- Total proposed fundraise of Rs 218.35 Cr via preferential issue of convertible warrants
- Rs 185.60 Cr (85% of proceeds) dedicated to organic and inorganic expansion and growth
- Rs 160.60 Cr specifically allocated for inorganic growth, including M&A and strategic investments
- Rs 25.00 Cr earmarked for organic growth, including new manufacturing capacities and units
- Rs 32.75 Cr (15% of proceeds) for general corporate purposes
SK Minerals & Additives Ltd has scheduled a board meeting for August 10, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. The company is coming off a fiscal year (FY26) with ₹318 Cr in revenue and ₹18 Cr in net profit. Investors will focus on whether the company can maintain the high revenue momentum seen in the March 2026 quarter (₹208 Cr). The specialty chemicals firm currently carries a debt of ₹100 Cr against a net worth of ₹80 Cr.
- Board meeting scheduled for August 10, 2026
- Results for the quarter ended June 30, 2026, to be approved
- Company reported a TTM PAT of ₹29 Cr
- March 2026 quarter revenue was ₹208 Cr
SK Minerals & Additives Ltd has received shareholder approval for the issuance of 55,00,000 convertible warrants to both Promoter and Non-Promoter groups. The approval was granted during the Extra-Ordinary General Meeting (EGM) held on July 9, 2026. The funds are earmarked for manufacturing expansion, organic and inorganic growth (including acquisitions), and investment in new technologies. Additionally, the company approved an increase in its Authorized Share Capital to facilitate this issuance.
- Approval for issuance of 55,00,000 convertible warrants to Promoters and Non-Promoters
- Funds intended for manufacturing expansion and potential value-creating acquisitions
- Increase in Authorized Capital of the company approved via Ordinary Resolution
- EGM conducted on July 9, 2026, with remote e-voting held between July 6 and July 8, 2026
- Pricing determined as per SEBI regulations to ensure transparency and fairness
Financial Performance
Revenue Growth by Segment
Total operating revenue grew by 91.97% from INR 109.39 Cr in FY24 to an estimated INR 210 Cr in FY25. This growth was primarily driven by the manufacturing segment and the introduction of new products like base oil and food preservatives. Future revenue is projected to grow at a steady rate of 10-12% annually.
Geographic Revenue Split
Not disclosed in available documents; however, the company operates its primary manufacturing unit in Khanna, Punjab.
Profitability Margins
Operating margins improved significantly from 3.2% in FY23 to 6.40% in FY24, a 100% increase in margin efficiency. This was driven by lower material costs and a strategic shift toward the higher-margin manufacturing segment. PAT margins also rose from 1.54% in FY23 to 2.76% in FY24. Margins are expected to stabilize between 7-8% going forward.
EBITDA Margin
Operating margin stood at 6.40% in FY24, representing a 320 basis point improvement YoY. This core profitability is expected to reach 7-8% as the company scales its manufacturing of specialized additives.
Capital Expenditure
The company is estimated to reach a net worth of INR 26 Cr by March 2025 and INR 36 Cr by March 2026, suggesting internal accrual-funded growth. However, any large debt-funded capex is flagged as a risk that could weaken the capital structure.
Credit Rating & Borrowing
Ratings were upgraded to 'Crisil BBB-/Stable' (Long Term) and 'Crisil A3' (Short Term) in April 2025. The company has total bank loan facilities of INR 50 Cr (enhanced from INR 35 Cr), with interest coverage at 3.58 times as of FY24.
Operational Drivers
Raw Materials
The company utilizes various chemicals and minerals to produce additives; specific raw material names are not listed, but the finished products include base oil and food preservatives.
Key Suppliers
Not disclosed in available documents; however, the company maintains longstanding relationships with its supplier base to support its business risk profile.
Capacity Expansion
While specific MTPA figures are not provided, the company's revenue capacity has effectively doubled from INR 109.39 Cr to an estimated INR 210 Cr in FY25 through the addition of new product lines.
Raw Material Costs
Lower material costs were a primary driver for the operating margin doubling to 6.40% in FY24. Procurement strategies rely on the promoters' decade-long experience in the chemical industry.
Manufacturing Efficiency
Efficiency has improved by increasing the share of the manufacturing segment relative to trading, which fetches higher margins and drove the margin expansion to 6.40%.
Strategic Growth
Expected Growth Rate
10-12%
Growth Strategy
Growth will be achieved through the addition of new customers and the expansion of the product portfolio into high-demand areas such as base oil and food preservatives. The company is also focusing on increasing the revenue contribution from its own manufacturing unit in Khanna, Punjab, which offers superior margins compared to trading activities.
Products & Services
Specialized chemicals and minerals, specifically base oil for the petroleum industry and food preservatives for the food and bakery industry, alongside additives for plywood, cattle feed, and pigments.
New Products/Services
Recently launched base oil and food preservatives are the primary drivers for the revenue jump to INR 210 Cr in FY25.
Market Expansion
The company is expanding its customer base within the petroleum and food sectors to diversify its revenue streams.
External Factors
Industry Trends
The industry is seeing a shift toward specialized additives. SKMAPL is positioning itself by moving from a trading-heavy model to a manufacturing-focused model to capture higher value-add in the food and petroleum supply chains.
Competitive Landscape
The company competes in the fragmented chemical and mineral additives market, focusing on niche segments like cattle feed and bakery additives.
Competitive Moat
The company's moat is built on the 10+ years of experience of its promoters (Mr. Mohit Jindal and others) and established relationships with a diversified client base. This provides a stable platform for scaling new products like food preservatives.
Macro Economic Sensitivity
The company is sensitive to fluctuations in the chemical industry and raw material price volatility, which directly impacts its 6-8% operating margin target.
Consumer Behavior
Increased demand for processed foods and bakery products is driving the need for food preservatives, supporting the company's new product strategy.
Regulatory & Governance
Industry Regulations
Operations are subject to chemical manufacturing standards and food safety regulations for its preservative products. The company must comply with SEBI (Depositories and Participants) Regulations for its listed securities.
Risk Analysis
Key Uncertainties
The primary risk is an average financial risk profile with a gearing of 1.73 times in FY24. Any large debt-funded capital expenditure could weaken the capital structure and impact the credit rating.
Geographic Concentration Risk
Manufacturing is concentrated in a single location in Khanna, Punjab, making operations vulnerable to regional disruptions.
Third Party Dependencies
Moderate dependency on bank lenders, with average bank limit utilization at 79% through February 2025.
Credit & Counterparty Risk
Receivables quality is considered stable due to longstanding relationships with a diversified end-user base.
