BODALCHEM - Bodal Chemicals
📢 Recent Corporate Announcements
Bodal Chemicals reported a sharp decline in consolidated net profit to ₹2.42 million for Q3 FY26, down from ₹59.93 million in the previous quarter, despite a slight revenue growth to ₹4,895.69 million. The company has approved the sale of approximately 40 acres of land at its Unit-12 to buyers who will consume its byproducts, Chlorine and Hydrogen. This strategic move aims to monetize non-core assets and ensure uninterrupted production by securing captive-like consumption for byproducts. While 9-month profits show a significant year-on-year improvement to ₹157.68 million, the current quarterly performance remains under pressure.
- Consolidated revenue for Q3 FY26 rose 10.4% YoY to ₹4,895.69 million compared to ₹4,434.66 million.
- Net profit plummeted to ₹2.42 million in Q3 FY26 from ₹54.15 million in the same quarter last year.
- Board approved selling 15.19 acres and 24.71 acres of land at Unit-12 to industrial buyers to facilitate byproduct consumption.
- 9-month FY26 net profit stands at ₹157.68 million, a significant increase from ₹39.98 million in 9M FY25.
- Total comprehensive income for the quarter turned into a loss of ₹5.09 million due to foreign exchange translation differences.
Bodal Chemicals Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ending December 31, 2025. The certificate, issued by Registrar and Transfer Agent MUFG Intime India Pvt. Ltd., confirms that all dematerialization requests were processed within the mandated timelines. It verifies that physical security certificates were mutilated and cancelled after verification, with the depositories' names updated in the register of members. This filing is a standard procedural requirement for listed companies to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by Registrar and Transfer Agent (RTA) MUFG Intime India Private Limited.
- Confirms dematerialization requests were processed and listed on stock exchanges within prescribed timelines.
- Confirms that physical certificates were mutilated and cancelled after due verification by the depository participant.
Bodal Chemicals Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the financial results for the quarter and nine months ending December 31, 2025. The trading window will reopen 48 hours after the financial results are officially declared to the exchanges. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026
- Closure pertains to financial results for the quarter and nine months ended December 31, 2025
- Window to reopen 48 hours after the declaration of financial results
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015
Infomerics Valuation and Rating Limited has assigned new credit ratings to Bodal Chemicals Limited for total facilities worth INR 1127.53 crore. The long-term bank facilities of INR 957.53 crore have been rated 'IVR A-' with a 'Stable' outlook. Additionally, short-term bank facilities of INR 120.00 crore and proposed commercial paper of INR 50.00 crore received 'IVR A2+' ratings. This assignment establishes a credit profile for the company's significant debt and proposed short-term instruments.
- Total facilities worth INR 1127.53 crore assigned new ratings by Infomerics.
- Long-term bank facilities of INR 957.53 crore rated IVR A- with a Stable outlook.
- Short-term bank facilities of INR 120.00 crore assigned IVR A2+ rating.
- Proposed Commercial Paper of INR 50.00 crore assigned IVR A2+ rating.
Financial Performance
Revenue Growth by Segment
The Chemical Business is the only reportable segment. Standalone revenue for Q2 FY26 was INR 471.96 Cr, representing a 6.1% QoQ growth from INR 444.85 Cr in Q1 FY26. Consolidated revenue for Q2 FY26 was INR 480.45 Cr, up 5.8% QoQ from INR 454.20 Cr.
Geographic Revenue Split
Exports accounted for approximately 24% of total revenue in FY25, with the remaining 76% derived from domestic operations in India.
Profitability Margins
Standalone PBT margin for Q2 FY26 was 1.16% (INR 5.46 Cr), a significant decline from 3.10% (INR 13.81 Cr) in Q1 FY26. Net profitability was impacted by higher raw material consumption costs which rose to 57.0% of revenue in Q2 FY26 compared to 51.7% in Q1 FY26.
EBITDA Margin
Standalone EBITDA margin for Q2 FY26 was approximately 9.15% (INR 43.18 Cr), declining from 11.68% (INR 51.96 Cr) in Q1 FY26. The decline is primarily attributed to a 19.3% QoQ increase in raw material and inventory costs.
Capital Expenditure
Total assets as of September 30, 2025, were INR 2,312.85 Cr. Specific historical and planned CAPEX figures in INR Cr were not disclosed in the provided documents.
Credit Rating & Borrowing
Infomerics assigned a Long Term rating of IVR A-/Stable and a Short Term rating of IVR A2+ in December 2025. Proposed Commercial Paper (CP) of INR 50.00 Cr is expected to have interest rates between 7.5% and 9.5%.
Operational Drivers
Raw Materials
Raw materials include crude oil derivatives and other chemical inputs. Cost of materials consumed and inventory changes represented 57.0% of standalone revenue (INR 269.24 Cr) in Q2 FY26.
Import Sources
Not disclosed in available documents, although the company utilizes imports to facilitate natural hedging against export revenue.
Capacity Expansion
Current installed capacity and specific planned expansion units in MT were not disclosed in the provided documents.
Raw Material Costs
Raw material costs (including inventory changes) were INR 269.24 Cr in Q2 FY26, representing 57.0% of revenue. This reflects a 19.3% increase from INR 225.70 Cr in Q1 FY26, driven by global crude oil trends.
Strategic Growth
Growth Strategy
Growth is pursued through backward and forward integration in the chemical business and international expansion via 100% owned subsidiaries in Indonesia, China (Shijiazhuang), Turkey (Sener Boya), and Bangladesh (Bodal Bangla).
Products & Services
Dyes, Dye Intermediates, and Basic Chemicals.
Brand Portfolio
Bodal Chemicals.
Market Expansion
Expansion plans focus on strengthening the presence in international markets through established trading and manufacturing subsidiaries in Indonesia, China, and Turkey.
External Factors
Industry Trends
The chemical industry is currently influenced by global crude oil trends and shifting supply-demand dynamics. The industry is evolving towards integrated manufacturing models to ensure supply chain resilience and environmental compliance.
Competitive Landscape
Operates in the competitive chemical manufacturing sector; key competitors were not specifically named in the documents.
Competitive Moat
The company's moat is built on its integrated business model (backward and forward integration), which provides cost leadership and reduces dependency on external suppliers for intermediates. This is sustainable due to the high capital intensity and regulatory hurdles for new entrants.
Macro Economic Sensitivity
Highly sensitive to global crude oil price fluctuations and international trade policies affecting the chemical sector.
Geopolitical Risks
Exposure to trade barriers and regulatory shifts in key export markets and subsidiary locations including China and Turkey.
Regulatory & Governance
Industry Regulations
Operations are subject to stringent pollution control norms and environmental safety standards mandated for chemical manufacturing in India.
Environmental Compliance
BCL is exposed to environmental and regulatory compliance risks; any tightening of pollution control norms could adversely impact operations and reputation.
Risk Analysis
Key Uncertainties
Key risks include raw material price volatility (crude oil), which impacts 57% of the cost base, and potential changes in environmental regulations.
Geographic Concentration Risk
76% of revenue is concentrated in the domestic Indian market, with manufacturing primarily based in Gujarat.
Credit & Counterparty Risk
The company uses an Expected Credit Loss (ECL) model to manage impairment risks on trade receivables.