DYNPRO - Dynemic Products
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment: manufacturing and trading of food colors and chemicals. Consolidated total income for H1 FY26 was INR 183.82 Cr, representing a growth of 3.26% compared to INR 178.01 Cr in H1 FY25. However, Q2 FY26 revenue of INR 89.35 Cr saw an 8.7% decline compared to Q2 FY25 revenue of INR 97.90 Cr.
Geographic Revenue Split
Not disclosed in available documents.
Profitability Margins
Net Profit Margin for H1 FY26 was approximately 5.04% (INR 9.26 Cr profit on INR 183.82 Cr revenue), an improvement from 3.75% in H1 FY25. This margin expansion is driven by a 16.25% reduction in finance costs and improved operational efficiencies.
EBITDA Margin
The EBITDA margin rose to 13.76% in Q2 FY26, showing a slight improvement over the previous quarter. This was supported by increased capacity utilization and steady market demand for specialty chemicals.
Capital Expenditure
Not disclosed in available documents.
Credit Rating & Borrowing
CRISIL assigned a rating of 'ISSUER NOT COOPERATING' as of February 2020 due to lack of management interaction. Finance costs for H1 FY26 were INR 4.60 Cr, down 16.25% YoY from INR 5.49 Cr, reflecting a reduction in total debt.
Operational Drivers
Raw Materials
Cost of materials consumed represents the largest expense at INR 90.96 Cr for H1 FY26, accounting for 49.5% of total revenue. Specific chemical names were not disclosed.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
The company has a current total installed capacity of 22,644 MT per annum. This scalable infrastructure is intended to support future growth in the specialty chemicals sector.
Raw Material Costs
Raw material costs were INR 90.96 Cr in H1 FY26, down 2.38% from INR 93.18 Cr in H1 FY25. The company manages these costs through steady procurement despite market demand fluctuations.
Manufacturing Efficiency
Operational performance in Q2 FY26 was bolstered by increased capacity utilization across its 22,644 MTPA infrastructure.
Logistics & Distribution
Other expenses, which include distribution and logistics, amounted to INR 54.04 Cr in H1 FY26, representing 29.4% of total revenue.
Strategic Growth
Expected Growth Rate
Not disclosed in available documents.
Growth Strategy
Growth is targeted through the optimization of the 22,644 MTPA installed capacity and leveraging steady demand in the specialty chemicals market. The company focuses on financial prudence, evidenced by a 16.25% reduction in finance costs, to ensure long-term sustainability.
Products & Services
The company manufactures and trades food colors and specialty chemicals used in food, pharmaceutical, and cosmetic industries.
Brand Portfolio
Dynemic.
New Products/Services
Not disclosed in available documents.
Market Expansion
The company aims to meet current demand while supporting future growth opportunities in the specialty chemicals sector using its scalable capacity.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
The company has an associate, Dynemic Holdings Pvt Ltd, and a subsidiary, Cerecon Bio Sciences Private Limited.
External Factors
Industry Trends
The specialty chemicals industry is seeing steady demand, particularly for certified food-grade colors. Dynemic is positioned to benefit from this trend due to its extensive regulatory certifications.
Competitive Landscape
Not disclosed in available documents.
Competitive Moat
The company's moat is built on regulatory certifications including ISO 9001, FSSC 22000, FSSAI, EU, USFDA, Kosher, Halal, and WHO-GMP. These certifications are critical for the food and pharma sectors and serve as significant entry barriers.
Macro Economic Sensitivity
Not disclosed in available documents.
Consumer Behavior
There is a consistent shift toward high-quality, regulated food colors, which aligns with Dynemic's certified product portfolio.
Geopolitical Risks
Not disclosed in available documents.
Regulatory & Governance
Industry Regulations
Operations are strictly governed by FSSAI (India), USFDA (USA), and EU regulatory requirements for food-grade products.
Environmental Compliance
The company maintains ISO 14001 certification and is committed to socio-environmental aspects beyond standard compliance norms.
Taxation Policy Impact
The effective tax rate for H1 FY26 was approximately 24.2% (INR 2.96 Cr tax on INR 12.25 Cr PBT).
Legal Contingencies
Not disclosed in available documents.
Risk Analysis
Key Uncertainties
The primary business risk is the 'Issuer Not Cooperating' status from CRISIL, which may impact future credit availability. Raw material price volatility also remains a key uncertainty.
Geographic Concentration Risk
Not disclosed in available documents.
Third Party Dependencies
Not disclosed in available documents.
Technology Obsolescence Risk
Not disclosed in available documents.
Credit & Counterparty Risk
Trade receivables decreased by INR 2.41 Cr in H1 FY26, suggesting healthy collections and low counterparty risk.