CHEMCON - Chemcon Special.
📢 Recent Corporate Announcements
Chemcon Speciality Chemicals reported a 5% YoY revenue growth in Q3 FY26 to ₹57.3 crore, though 9M FY26 revenue showed a stronger 8% growth to ₹164.6 crore. Profitability was significantly impacted, with Q3 PAT declining 42% YoY to ₹5.1 crore due to lower realizations and Chinese dumping in the organic chemicals segment. The company is diversifying through the ₹36 crore acquisition of Shivam Petrochem, which adds new products like Trityl Chloride. Expansion remains a key focus with two new units (P10 and P11) expected to be commissioned in Q4 FY26.
- Q3 FY26 Revenue rose 5% YoY to ₹57.3 crore, while 9M FY26 Revenue grew 8% to ₹164.6 crore.
- EBITDA for Q3 FY26 fell to ₹6.7 crore from ₹11.3 crore YoY, with margins contracting due to pricing pressures.
- Acquired Shivam Petrochem Industries for ₹36 crore via slump sale to expand into new chemical intermediates.
- Inorganic chemicals volume dropped to 1,045 MT in Q3 FY26 vs 1,428 MT YoY, hit by reduced oil drilling activity.
- New manufacturing units P10 and P11 are scheduled for commissioning in Q4 FY26 to enhance organic chemical capacity.
Chemcon Speciality Chemicals reported a mixed set of results for Q3 FY26, with revenue from operations growing 5.4% YoY to ₹57.32 crore. However, the company's net profit saw a sharp decline of 42.2% YoY, falling to ₹5.09 crore from ₹8.81 crore in the same quarter last year. This margin compression is largely attributed to higher raw material costs and increased operational expenses. For the nine-month period ended December 2025, net profit stands at ₹17.23 crore, down from ₹20.51 crore in the previous year.
- Revenue from operations increased to ₹57.32 crore in Q3 FY26 from ₹54.39 crore in Q3 FY25.
- Net profit for the quarter fell significantly to ₹5.09 crore compared to ₹8.81 crore YoY.
- Earnings Per Share (EPS) declined to ₹1.39 from ₹2.40 in the corresponding quarter of the previous year.
- Cost of materials consumed rose to ₹29.33 crore in Q3 FY26, up from ₹26.94 crore in Q3 FY25.
- The company is proceeding with the ₹36 crore acquisition of Shivam Petrochem Industries to expand its business undertaking.
Chemcon Speciality Chemicals reported a 5.4% YoY increase in revenue to ₹57.33 crore for the quarter ended December 31, 2025. However, net profit saw a significant decline of 42.2% YoY, falling to ₹5.09 crore from ₹8.81 crore in the same period last year. The profitability was impacted by rising raw material costs and a sharp spike in finance costs, which rose to ₹66.73 lakhs from ₹9.32 lakhs in the previous quarter. The company also finalized the acquisition of Shivam Petrochem Industries for ₹36 crore during this period.
- Revenue from operations increased 5.4% YoY to ₹57.33 crore.
- Net Profit (PAT) declined 42.2% YoY to ₹5.09 crore, down from ₹8.81 crore.
- Finance costs surged significantly to ₹66.73 lakhs in Q3 FY26 compared to ₹9.32 lakhs in Q2 FY26.
- 9M FY26 PAT stands at ₹17.23 crore, a 16% decline compared to ₹20.51 crore in 9M FY25.
- Completed the acquisition of Shivam Petrochem Industries for a consideration of ₹36.00 crore.
Chemcon Speciality Chemicals has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within the legally mandated timelines. It further verifies that security certificates received were mutilated and cancelled after due verification. This filing is a standard administrative requirement ensuring the integrity of the company's share registry.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited
- Confirms dematerialization requests were processed and listed on stock exchanges
- Verification that security certificates were mutilated and cancelled per SEBI norms
- Confirms the register of members was updated within prescribed timelines
Chemcon Speciality Chemicals Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the announcement of the company's unaudited 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 made public. The specific date for the board meeting to approve these results will be communicated in the future.
- Trading window closure begins on January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ended December 31, 2025.
- Window will reopen 48 hours after the official announcement of financial results.
- Restriction applies to all designated persons and their immediate relatives under the company's code of conduct.
Chemcon Speciality Chemicals has finalized the acquisition of Shivam Petrochem Industries, a promoter group entity, for a total consideration of ₹36 crore. The transaction was executed via a slump sale on a going concern basis, following shareholder approval at the 36th AGM held in September 2025. The company has confirmed the full payment of the consideration and the fulfillment of all conditions precedent under the Slump Sale Agreement. This acquisition integrates a related-party business into the listed entity, marking a significant step in the company's consolidation strategy.
- Acquisition of Shivam Petrochem Industries completed for a lump-sum consideration of ₹36 crore.
- The transaction was structured as a slump sale on a going concern basis from a promoter group entity.
- Shareholders previously approved this Material Related Party Transaction on September 11, 2025.
- All conditions precedent and actions contemplated under the agreement have been duly fulfilled as of December 25, 2025.
- The acquisition is now fully consummated with the transfer of the business undertaking completed.
Chemcon Speciality Chemicals announced an inter-se transfer of shares between promoter group members. Mr. Naresh Vijaykumar Goyal, a member of the promoter group, acquired 62,33,500 equity shares via gift. Mr. Navdeep Naresh Goyal, one of the promoters, disposed of 62,33,500 equity shares. This off-market transaction resulted in Mr. Goyal's holding increasing to 92,69,326 shares (25.3048%) and Mr. Navdeep Goyal's holding decreasing to 23,74,666 shares (6.4827%).
- Naresh Vijaykumar Goyal acquired 62,33,500 Equity Shares.
- Navdeep Naresh Goyal disposed of 62,33,500 Equity Shares.
- Naresh Vijaykumar Goyal's holding increased to 92,69,326 shares (25.3048%).
- Navdeep Naresh Goyal's holding decreased to 23,74,666 shares (6.4827%).
Financial Performance
Revenue Growth by Segment
Revenue from operations declined by 22.35% YoY, falling from INR 267.09 Cr in FY24 to INR 207.40 Cr in FY25. The business is split into Organic and Inorganic Chemicals, with revenue remaining range-bound between INR 250-300 Cr over the last six fiscals due to cyclicality in the chemical industry.
Geographic Revenue Split
Exports contributed 37% of total revenue in the first nine months of FY25, a decrease from 59% in FY23. This shift indicates a higher reliance on the domestic pharmaceutical and oil exploration markets, which now account for approximately 63% of the revenue mix.
Profitability Margins
Net profit margin improved significantly as the company reported a profit of INR 24.45 Cr in FY25 compared to INR 19.19 Cr in FY24, representing a 27.41% increase despite lower revenues. This was driven by a reduction in the cost of materials consumed, which dropped by 42.65% YoY to INR 117.08 Cr.
EBITDA Margin
Operating margins fluctuated significantly, reaching 17.65% in the first nine months of FY25, up from 10.22% in FY24. The margin is expected to stabilize above 15% over the medium term as the company diversifies its product portfolio and enters new markets to mitigate raw material price volatility.
Capital Expenditure
The company operates 9 manufacturing plants and 6 owned warehouses. While specific future INR Cr figures for expansion are not disclosed, the company has historically maintained a robust asset base to support its position as the only manufacturer of HMDS in India.
Credit Rating & Borrowing
The company holds a 'CRISIL BBB+/Stable' rating, recently revised from 'Negative' in April 2025. Borrowing costs are minimal as debt primarily consists of fixed deposit-backed overdrafts and negligible term loans, resulting in a healthy interest coverage ratio of 11.93 times as of September 2024.
Operational Drivers
Raw Materials
Key raw materials include crude oil derivatives and chemical intermediates, which are highly sensitive to global price fluctuations. Cost of materials consumed represented 56.45% of total revenue in FY25, down from 76.43% in FY24.
Capacity Expansion
Currently operates 9 operational plants and 6 owned warehouses. The company is the 3rd largest manufacturer of HMDS worldwide and the only producer in India, providing a significant competitive advantage in domestic supply chains.
Raw Material Costs
Raw material costs stood at INR 117.08 Cr in FY25. The company faces a lag in passing on price increases to customers, which caused operating margins to fluctuate from 32.44% in FY22 to 9.72% in Q1FY24 before recovering to 17.65% in FY25.
Manufacturing Efficiency
Manufacturing efficiency is reflected in the ability to maintain a strong market position in specialized products like CMIC and HMDS despite intense competition from large global players who control 50% of the market.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be achieved through product diversification beyond its core HMDS and CMIC lines and expansion into new international markets. The company aims to leverage its position as a reliable supplier to the pharmaceutical and oil industries to stabilize revenue between INR 250-300 Cr.
Products & Services
Hexamethyl Disiliazane (HMDS), Chloromethyl Isopropyl Carbonate (CMIC), and various Bromides used in pharmaceutical synthesis and oil exploration.
Brand Portfolio
Chemcon Speciality Chemicals.
New Products/Services
The company is focusing on product diversification to reduce cyclicality, though specific new product names and their % contribution are not detailed.
Market Expansion
Targeting new export markets to return to the 50-60% export revenue contribution level seen in previous years.
Market Share & Ranking
Only manufacturer of HMDS in India and the 3rd largest manufacturer of HMDS worldwide.
External Factors
Industry Trends
The speciality chemicals industry is evolving towards higher regulatory scrutiny and environmental compliance. Chemcon is positioned as a niche player in the HMDS and CMIC segments, benefiting from the 'Make in India' trend as the sole domestic producer.
Competitive Landscape
Intensely competitive industry dominated by large players who hold 50% of the market share, putting pressure on smaller speciality players to maintain high efficiency.
Competitive Moat
The company's moat is based on being the only Indian manufacturer of HMDS and the 3rd largest globally. This cost and availability advantage is sustainable as long as manufacturing standards and capacity lead times are maintained.
Macro Economic Sensitivity
Highly sensitive to global crude oil prices and the cyclical nature of the pharmaceutical and oil exploration industries.
Consumer Behavior
Demand is driven by the growth of the pharmaceutical sector and global oil exploration activities.
Geopolitical Risks
Trade barriers and changes in international chemical regulations pose risks to the export business, which is a significant portion of the revenue mix.
Regulatory & Governance
Industry Regulations
Operations are governed by pollution control norms and manufacturing standards for speciality chemicals. Compliance is critical as regulatory changes can lead to operational halts or increased capital requirements for effluent treatment.
Environmental Compliance
The company is subject to stringent environmental regulations governing chemical manufacturing; however, specific ESG compliance costs in INR were not disclosed.
Taxation Policy Impact
The effective tax rate is reflected in the deferred tax liabilities of INR 4.7 Cr and current tax liabilities of INR 0.2 Cr for FY25.
Legal Contingencies
No key audit matters or significant pending court cases were identified by the auditors in the FY25 report.
Risk Analysis
Key Uncertainties
Volatility in raw material prices and cyclicality in end-user industries (Pharma/Oil) are the primary risks, with the potential to swing operating margins by over 10% annually.
Geographic Concentration Risk
Significant concentration in the Indian market (approx. 63% of revenue in 9M FY25), with the remaining 37% coming from exports.
Third Party Dependencies
Dependency on global crude oil price movements for raw material costing, which impacts the entire value chain.
Technology Obsolescence Risk
The company must continuously upgrade its 9 plants to meet evolving manufacturing standards and maintain its global ranking in HMDS production.
Credit & Counterparty Risk
Receivables quality is supported by a large, established clientele in the pharmaceutical and oil sectors, contributing to a strong financial risk profile with a net worth of INR 488 Cr.