🔍

AKSHARCHEM - AksharChem (I)

📊 NSE: AKSHARCHEM 🏢 Dyes And Pigments 📅 Last Updated: 12/13/2025 18:06

📢 Recent Corporate Announcements

AksharChem India Credit Rating Outlook Revised to Negative; Long-term Rating Reaffirmed at CARE A-

🔴 NEGATIVE ⭐ 7/10

REGULATORY 📅 26 Feb 2026, 11:49 AM

CARE Ratings has reaffirmed AksharChem's long-term rating at 'CARE A-' but revised the outlook to 'Negative' due to sustained weak financial performance. The company reported a net loss of ₹5.24 crore in 9MFY26, with operating margins dropping to 4.43% from 7.39% YoY. Debt coverage metrics have deteriorated significantly, with Total Debt/PBILDT rising to 8.46x, though overall gearing remains comfortable at 0.25x. Recovery depends on the stabilization of the new PPT silica plant and mitigation of the 50% US export tariff impact.

Outlook revised to Negative from Stable; Long-term rating reaffirmed at CARE A-.
Reported a net loss of ₹5.24 crore in 9MFY26 compared to a profit of ₹3.33 crore in 9MFY25.
Operating margins compressed to 4.43% in 9MFY26 due to 50% US export tariffs and high input costs.
Total Debt/PBILDT ratio weakened significantly to 8.46x in 9MFY26 from 2.69x in FY25.
PPT silica segment yet to achieve break-even, impacting overall overhead absorption and profitability.

💡 Investors should exercise caution as the negative outlook indicates a risk of a future rating downgrade if margins remain suppressed. Monitor the silica segment's utilization and potential reduction in US tariffs as primary indicators for a turnaround.

AksharChem India Shuts Down H-Acid Plant for 3-4 Weeks for Maintenance

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 16 Feb 2026, 04:09 PM

AksharChem India Limited has initiated a planned shutdown of its H-Acid manufacturing facility located at Village Indrad, Mahesana. The shutdown, which began on February 16, 2026, is intended for essential repair and maintenance work. The company anticipates that production will remain suspended for a period of three to four weeks. This temporary halt is expected to affect the output of H-Acid, a key product for the company, during the current quarter.

Plant shutdown effective from February 16, 2026, at the Mahesana facility
Estimated downtime for repair and maintenance is 3 to 4 weeks
The H-Acid plant is a significant production unit for the company's chemical portfolio
The shutdown is a planned operational activity communicated under SEBI regulations

💡 This is a routine operational update; investors should verify the resumption of operations in mid-March to ensure no extended production delays.

AksharChem Credit Outlook Revised to Negative by CARE Ratings; Ratings Reaffirmed at 'A-'

🔴 NEGATIVE ⭐ 7/10

REGULATORY 📅 06 Feb 2026, 09:23 PM

CARE Ratings has reaffirmed AksharChem India's long-term rating at 'CARE A-' but revised the outlook from 'Stable' to 'Negative'. This revision follows a sharp decline in operating margins to 4.43% in 9MFY26 and a net loss of ₹5.24 crore compared to a profit in the previous year. The company's debt coverage metrics have also weakened significantly, with Total Debt to PBILDT rising to 8.46x. Investors should note the impact of a 50% US tariff on exports and the ongoing stabilization risks of the new PPT silica plant.

Outlook revised to 'Negative' from 'Stable' for long-term facilities totaling ₹108.41 crore.
Operating margin compressed by 296 bps to 4.43% in 9MFY26 due to weak realisations and US tariffs.
Reported a net loss of ₹5.24 crore in 9MFY26 against a profit of ₹3.33 crore in 9MFY25.
Total Debt to PBILDT ratio deteriorated sharply to 8.46x in 9MFY26 from 2.69x in FY25.
Overall gearing remains comfortable at 0.25x as of March 31, 2025, despite recent performance pressure.

💡 Investors should exercise caution as the negative outlook reflects sustained pressure on profitability and debt serviceability. Monitor the stabilization of the PPT silica segment and any relief in US export tariffs as key triggers for a potential recovery.

AksharChem Q3 Results: Revenue Drops 11% YoY, Reports Net Loss of ₹4.62 Cr

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 28 Jan 2026, 05:54 PM

AksharChem India reported a weak set of numbers for Q3 FY26, with revenue from operations declining 11.4% YoY to ₹80.38 crore. The company swung to a net loss of ₹4.62 crore for the quarter, compared to a profit of ₹1.19 crore in the same period last year. Total expenses at ₹83.49 crore exceeded total income, primarily driven by higher material costs. A positive development is the commissioning of a 5.19 MWp solar power plant in November 2025, which is expected to reduce captive power costs going forward.

Revenue from operations fell 11.4% YoY to ₹80.38 crore from ₹90.69 crore.
Reported a net loss of ₹4.62 crore in Q3 FY26 versus a net profit of ₹1.19 crore in Q3 FY25.
Cost of materials consumed rose to ₹54.74 crore from ₹44.78 crore in the preceding quarter.
Commissioned a 5.19 MWp solar power plant on November 12, 2025, for captive consumption.
Earnings Per Share (EPS) declined to negative ₹5.75 from ₹1.48 YoY.

💡 Investors should remain cautious as the company has turned loss-making due to margin pressure and declining sales. Monitor the impact of the new solar plant on operating margins in the coming quarters to see if cost efficiencies materialize.

AksharChem Q3 FY26 Revenue Falls 11% YoY to ₹80.38 Cr; Swings to Net Loss of ₹4.62 Cr

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 28 Jan 2026, 05:53 PM

AksharChem India reported a weak performance for Q3 FY26, with revenue from operations declining 11.4% YoY to ₹80.38 crore. The company posted a net loss of ₹4.62 crore, a significant downturn from the ₹1.19 crore profit recorded in the same quarter last year. Operational efficiency was pressured as total expenses of ₹83.49 crore exceeded total income, leading to a loss before tax of ₹3.07 crore. A potential positive for future quarters is the commissioning of a 5.19 MWp solar power plant in November 2025 for captive consumption.

Revenue from operations decreased to ₹80.38 crore in Q3 FY26 from ₹90.69 crore in Q3 FY25.
Reported a net loss of ₹4.62 crore for the quarter compared to a net profit of ₹1.19 crore YoY.
Total expenses stood at ₹83.49 crore, resulting in an operational loss as revenue failed to cover costs.
EPS for the quarter turned negative at ₹(5.75) versus ₹1.48 in the previous year's corresponding quarter.
Successfully commissioned a 5.19 MWp ground-mounted solar power plant on November 12, 2025, for captive use.

💡 Investors should exercise caution as the company has entered a loss-making phase with declining revenues. Monitor the next two quarters to see if the new solar plant effectively reduces power costs and improves operational margins.

AksharChem India Submits SEBI Regulation 74(5) Compliance Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 06 Jan 2026, 01:42 PM

AksharChem India Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, covers the quarter ended December 31, 2025. It confirms that share certificates received for dematerialization were processed, mutilated, and cancelled as per regulatory requirements. This filing is a standard administrative procedure to ensure the accuracy of the company's shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Confirmation provided by RTA MUFG Intime India Private Limited (formerly Link Intime).
Verification that dematerialized securities are listed on both BSE and NSE.
Confirmed that physical certificates were mutilated and cancelled after due verification.
The name of depositories has been substituted in the register of members within prescribed timelines.

💡 No action is required from investors as this is a routine regulatory filing. Investors should monitor upcoming quarterly financial results for more significant performance indicators.

AksharChem India Announces Trading Window Closure from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 25 Dec 2025, 03:15 PM

AksharChem India Limited has officially notified the stock exchanges regarding the closure of its trading window starting January 1, 2026. This routine regulatory measure is taken in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are announced. The specific date for the board meeting to approve these results will be communicated at a later date.

Trading window closure begins on January 1, 2026.
Closure is related to the Unaudited financial results for the quarter and nine months ending December 31, 2025.
The window will reopen 48 hours after the financial results are declared.
The restriction applies to all Designated Persons and their immediate relatives as per the company's internal code of conduct.

💡 This is a standard regulatory filing and does not require any immediate action from investors. Shareholders should look out for the upcoming announcement regarding the board meeting date for Q3 FY26 results.

AksharChem Commissions 5.19 MWp Ground Mounted Solar Plant for Captive Use

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 18 Dec 2025, 06:01 PM

AksharChem India Limited has successfully commissioned a 5.19 MWp (DC) / 3.85 MWp (AC) ground-mounted solar power plant in Banaskantha, Gujarat. The facility is designed for captive consumption at the company's manufacturing unit located in Indrad (Chhatral). Power generation officially commenced on November 12, 2025, following certification from the Gujarat Energy Development Agency (GEDA). This initiative is part of the company's strategy to enhance its renewable energy portfolio and reduce long-term energy costs.

Commissioned 5.19 MWp (DC) / 3.85 MWp (AC) solar power plant for captive consumption
Solar power generation started effective from November 12, 2025
Plant located at Village Makdala, Banaskantha to power the Indrad (Chhatral) factory
Received official commissioning certificate from GEDA on December 18, 2025
Move aimed at enhancing sustainability and reducing operational power costs

💡 Investors should view this as a positive step toward margin improvement through reduced power costs. Monitor upcoming quarterly results to quantify the impact of lower energy expenses on the bottom line.

View All AKSHARCHEM Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 was INR 186.26 Cr. For FY25, revenue was INR 302.05 Cr, representing a decline of 12.77% compared to INR 346.27 Cr in FY24. Segment-specific growth percentages are not disclosed in the available documents.

Profitability Margins

Operating Margin Ratio was 12% in FY25, down from 16% in FY24. Net Profit Margin (PBT) was -5.20% in FY25 compared to 1.41% in FY24. H1 FY26 recorded a PBT loss of INR 0.37 Cr.

EBITDA Margin

Operating margin ratio stood at 12% for FY25, a 25% decrease from the 16% margin achieved in FY24. Historical EBITDA margin in Q1 FY20 was 8.3%.

Capital Expenditure

Non-current assets increased by INR 9.44 Cr during H1 FY26, rising from INR 280.89 Cr in March 2025 to INR 290.33 Cr in September 2025.

Credit Rating & Borrowing

Rating sensitivity factors include maintaining a PBILDT margin above 15% and ROCE above 15% for a positive rating action. A sustained margin below 8% or gearing beyond 0.75x would lead to a negative rating action.

⚙️ Operational Drivers

Raw Materials

Chemical intermediates for Pigment Green 7 and Precipitated Silica. Specific chemical names and their percentage of total cost are not disclosed.

Capacity Expansion

Historical volume was 2,643 MT in Q1 FY20. Current installed capacity and specific expansion timelines are not disclosed in the provided documents.

Raw Material Costs

Raw material costs were INR 44.0 Cr in Q1 FY20, representing approximately 62.7% of revenue. Management notes volatility in raw material prices as a key risk to PBILDT margins.

Manufacturing Efficiency

Partial stoppage of plant operations in FY25 resulted in minimum operating margins and an inability to cover fixed overheads, leading to a negative bottom line.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth is driven by innovation in products and processes, focusing on Pigment Green 7 and Precipitated Silica. The company emphasizes human resource development through quarterly motivational programs and knowledge sharing to improve work quality and operational conclusions.

Products & Services

Pigment Green 7 (used in inks, plastics, and coatings) and Precipitated Silica (used in rubber, tires, and toothpaste).

Brand Portfolio

Aksharchem, Asaflow (Pigment Green 7), and Aksil (Precipitated Silica).

🌍 External Factors

Industry Trends

The industry experienced prolonged sluggishness in demand, though management noted signs of improvement in the latter half of FY25. The sector is evolving through innovation in chemical processes.

Competitive Landscape

Key competitors are not named, but the landscape is characterized by price volatility and demand fluctuations from end-user industries.

Competitive Moat

Moat is based on trademarked brands (Asaflow, Aksil) and innovation-led product differentiation in the Pigment Green 7 and Precipitated Silica segments.

Macro Economic Sensitivity

Demand is highly sensitive to the broader economy; a slowdown led to a reduction in demand from end-user industries, impacting volumes by 12.6% in historical periods.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI Listing Regulations and Indian Accounting Standards (IND AS 34). Specific manufacturing or pollution norms are not detailed.

Taxation Policy Impact

The company recorded a deferred tax credit of INR 3.12 Cr in FY25. H1 FY26 tax expense was INR 0.29 Cr.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and foreign exchange rates are the primary uncertainties, with the potential to swing PBILDT margins by over 7% based on historical rating sensitivities.