DIAMINESQ - Diamines & Chem.
📢 Recent Corporate Announcements
Diamines & Chemicals Limited has confirmed zero deviation in the utilization of funds raised through its preferential issue of convertible warrants for the quarter ended December 31, 2025. The company has received and utilized ₹12.51 crores, representing the initial 25% subscription money of the total ₹50.58 crores issue. The funds are being deployed as planned for capital expenditures, working capital, and general corporate purposes. This routine disclosure confirms that management is adhering to the capital allocation strategy communicated to shareholders.
- Total potential fundraise of ₹50.58 crores through the allotment of 906,390 convertible warrants.
- ₹12.51 crores (25% of the issue price) has been received and utilized as of December 31, 2025.
- Warrants were issued at a price of ₹552 per warrant on a preferential basis.
- Zero deviation reported in the utilization of funds against the objects of CAPEX and working capital.
Diamines & Chemicals Limited reported a significant downturn in its Q3 FY26 results, with standalone revenue falling 56.4% YoY to ₹763.57 Lakhs. The company recorded a net loss of ₹192.55 Lakhs for the quarter, a sharp increase from the ₹15.34 Lakhs loss in the previous year's corresponding quarter. For the nine-month period, the company reported a total loss of ₹901.97 Lakhs compared to a profit of ₹287.07 Lakhs in the prior year. The decline is primarily attributed to poor performance in the Specialty Chemicals segment, which saw its segment results turn into a loss.
- Standalone Revenue from Operations fell to ₹763.57 Lakhs in Q3 FY26 from ₹1,751.41 Lakhs in Q3 FY25.
- Net loss for the nine months ended Dec 31, 2025, stood at ₹901.97 Lakhs compared to a profit of ₹287.07 Lakhs in the previous year.
- Specialty Chemicals segment loss before tax and finance costs was ₹290.20 Lakhs for the quarter.
- Total expenses for the quarter were ₹1,139.19 Lakhs, significantly exceeding the total income of ₹835.63 Lakhs.
- The company made a provision of ₹4.62 Lakhs towards the impact of new Labour Codes effective from November 2025.
Diamines & Chemicals Limited reported a significantly weak performance for the quarter ended December 31, 2025, posting a standalone net loss of ₹192.55 Lakhs compared to a profit of ₹157.50 Lakhs in the same quarter last year. Revenue from operations plummeted by over 56% YoY to ₹763.87 Lakhs, reflecting severe pressure in its core Specialty Chemicals segment. For the nine-month period ending December 2025, the company has accumulated a net loss of ₹901.97 Lakhs, a sharp reversal from the ₹287.07 Lakhs profit recorded in the previous year's corresponding period. The board also reviewed and approved a revised Related Party Policy during the meeting.
- Revenue from operations fell 56.4% YoY to ₹763.87 Lakhs in Q3 FY26 from ₹1,751.41 Lakhs in Q3 FY25.
- Standalone net loss for the quarter stood at ₹192.55 Lakhs versus a net profit of ₹157.50 Lakhs in the prior year period.
- Specialty Chemicals segment recorded a loss of ₹290.20 Lakhs before tax and finance costs during the quarter.
- Nine-month (9M FY26) revenue declined to ₹2,917.05 Lakhs from ₹5,349.75 Lakhs in 9M FY25.
- The company made a provision of ₹4.62 Lakhs towards the impact of new Labour Codes effective from November 2025.
Diamines & Chemicals Limited has received a Consolidated Consent & Authorization (CC&A) amendment from the Gujarat Pollution Control Board (GPCB) on January 21, 2026. This regulatory approval allows the company to modify its product mix and set up new industrial activities within its existing manufacturing unit in Vadodara. The management expects this move to facilitate the production of new items and contribute to an overall increase in total production capacity. The license is valid until September 30, 2027, providing a clear operational runway for the planned expansion.
- Received CC&A Amendment from Gujarat Pollution Control Board (GPCB) on January 21, 2026
- Approval enables setting up of new industrial plant/activities within the existing manufacturing unit
- The amendment allows for a revised product mix, leading to an increase in total production capacity
- The regulatory license (Order AWH-151692) is valid for a period ending September 30, 2027
Diamines & Chemicals Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the period ended December 31, 2025. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within the prescribed timelines. It further verifies that the original share certificates were mutilated and cancelled, and the name of the depositories was updated in the register of members. This is a standard procedural filing to ensure the integrity of the company's shareholding records.
- Compliance certificate for the quarter ended December 31, 2025, submitted to BSE and NSE.
- Issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime).
- Confirms that securities received for dematerialization were listed on the stock exchanges.
- Verification that security certificates were mutilated and cancelled after due verification by the depository participant.
Diamines & Chemicals Limited has announced the closure of its trading window effective January 1, 2026, in compliance with SEBI Insider Trading regulations. The closure is intended for the preparation and declaration of the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the results are made public. 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 pertains to the unaudited financial results for the quarter and nine months ending December 31, 2025
- Restriction applies to Designated Persons, Immediate Relatives, and Connected Persons
- Window will reopen 48 hours after the official announcement of financial results
- Board meeting date for result approval is yet to be announced
Financial Performance
Revenue Growth by Segment
Total standalone revenue declined by 29.61% YoY, falling from INR 10,676.05 lakhs in FY 2023-24 to INR 7,514.57 lakhs in FY 2024-25. The company operates in two primary segments: Specialty Chemicals and Trading in Fruits and Vegetables, though specific revenue splits per segment were not provided.
Geographic Revenue Split
Not disclosed in available documents, though the primary manufacturing operations are concentrated in Vadodara, Gujarat.
Profitability Margins
Profitability saw a sharp decline; Operating Profit Margin dropped from 23.33% to 9.32% (a 60% reduction), and Net Profit Margin fell from 17.08% to 6.29% (a 63% reduction). This was primarily driven by a reduction in sales prices and a simultaneous increase in material costs.
EBITDA Margin
Operating profit after tax for FY 2024-25 was INR 448.73 lakhs, representing a 9.32% margin, down significantly from INR 1,777.13 lakhs (23.33% margin) in the previous year due to global demand-supply imbalances in the ethylene amines market.
Capital Expenditure
The company provided an outstanding loan of INR 567.51 lakhs to its wholly-owned subsidiary, DACL Fine Chem Limited, specifically for Dahej site-related activities and statutory requirements.
Credit Rating & Borrowing
CRISIL migrated the company's ratings to 'CRISIL BB+/Stable/CRISIL A4+ Issuer not cooperating' due to inadequate information and lack of management cooperation. The company also failed to pay rating surveillance fees. Internal borrowing costs for the subsidiary are set at 11.65% p.a.
Operational Drivers
Raw Materials
Specific raw material names were not listed, but 'material cost' is cited as a primary driver for the 60% decline in operating margins.
Import Sources
The company utilizes authorization licenses for the import of materials and services, indicating a reliance on international sourcing, though specific countries were not named.
Capacity Expansion
While specific MTPA figures were not provided, the company is investing in its Dahej site through its subsidiary, DACL Fine Chem Limited, supported by an INR 567.51 lakh loan.
Raw Material Costs
Raw material costs increased significantly in FY 2024-25, which, combined with falling sales prices, led to a 74.75% drop in standalone operating profit after tax.
Manufacturing Efficiency
Inventory Turnover Ratio worsened by 48%, falling from 2.83 times to 1.47 times, indicating slower movement of stock and potential inefficiencies in production planning or market demand.
Strategic Growth
Growth Strategy
Growth will be pursued by maintaining market leadership in specific ethylene amines segments, leveraging the Indian growth market, and utilizing the proceeds from 9,16,390 warrants approved for allotment in September 2024 to strengthen the balance sheet.
Products & Services
The company manufactures ethylene amines and piperazine products and engages in the trading of fruits and vegetables.
Brand Portfolio
DIAMINESQ (DACL).
Market Expansion
The company is focusing on sustaining market share in segments where it holds a leadership position and is expanding its footprint through its Dahej site activities.
Market Share & Ranking
The company identifies as a key manufacturer of ethylene amines in India, which is considered a growth market.
Strategic Alliances
The company maintains a strategic relationship with KLJ Organic Diamines Limited (Associate/Joint Venture) and has provided it with a loan of INR 256.41 lakhs at 8% interest for business purchase.
External Factors
Industry Trends
The ethylene amines industry is currently characterized by a global demand-supply imbalance. While the Indian market is growing, the company must navigate a challenging scenario of high material costs and low finished goods pricing.
Competitive Landscape
The company faces competition from global ethylene amine producers, which influences domestic pricing and margin stability.
Competitive Moat
The company's moat is built on being a key domestic manufacturer in a growth market (India) with established customer relationships, though this is currently challenged by global price volatility.
Macro Economic Sensitivity
Highly sensitive to global chemical pricing cycles and demand-supply dynamics in the specialty chemicals sector.
Geopolitical Risks
Global supply chain imbalances in the ethylene amines market represent a significant geopolitical and economic risk to stable operations.
Regulatory & Governance
Industry Regulations
Operations are governed by the Manufacture, Storage and Import of Hazardous Chemicals Rules (1989) and Hazardous Wastes Rules (1989/2003).
Environmental Compliance
The company complies with major environmental regulations including the Air Act (1981), Water Act (1974), and Environment Protection Act (1986).
Legal Contingencies
The Secretarial Audit report indicates general compliance with applicable laws, with no specific major legal disputes or case values mentioned in the provided text.
Risk Analysis
Key Uncertainties
The primary uncertainty is the duration of the global demand-supply imbalance in ethylene amines, which caused a 74.75% drop in standalone operating profit.
Geographic Concentration Risk
Manufacturing is concentrated at a single location in Vadodara, Gujarat, creating regional operational risk.
Credit & Counterparty Risk
The Debtors Turnover Ratio decreased from 5.19 to 4.54 times, suggesting a slight slowdown in receivables collection.