JGCHEM - J.G.Chemicals
📢 Recent Corporate Announcements
J.G. Chemicals achieved its highest-ever quarterly revenue, EBITDA, and PAT in Q3 FY26, with consolidated revenue reaching ₹249 crores, a 19% YoY increase. The company is progressing with its Dahej greenfield project, targeting Phase 1 commissioning in H1 FY27, alongside brownfield expansion at Naidupeta. Management highlighted strong demand from the tire industry, supported by a ₹12,000 crore sector-wide capex plan and recent GST reductions. Additionally, pilot trials for a new recycled rubber project have shown encouraging results, potentially diversifying the product portfolio.
- Reported highest-ever quarterly consolidated revenue of ₹249 crores, up 19% YoY.
- Q3 FY26 EBITDA stood at ₹26 crores with a PAT of approximately ₹18 crores.
- Greenfield project at Dahej, Gujarat, is on track for Phase 1 commissioning in H1 FY27.
- Tire industry demand remains robust, supported by ₹12,000 crore capex plans from major manufacturers.
- Commenced pilot-scale trials for a specialized recycled rubber project to increase content per tire.
J.G. Chemicals Limited has officially released the audio recording of its earnings conference call conducted on February 16, 2026. The call addressed the company's unaudited financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a routine regulatory requirement under SEBI Listing Obligations and Disclosure Requirements. Investors can access the recording on the company's website to gain insights into management's commentary on the business environment.
- Audio recording of the earnings call held on February 16, 2026, is now available for public review.
- The call discussed financial results for the quarter and nine months ended December 31, 2025.
- Recording is hosted on the company's official investor relations webpage.
- Compliance filing submitted under Regulation 30 of the SEBI LODR Regulations, 2015.
J.G. Chemicals reported its highest-ever quarterly sales in Q3 FY26, with revenue reaching ₹248.5 crore and a PAT of ₹18.4 crore. The company maintained strong margins with an EBITDA of ₹25.9 crore (10.42% margin) driven by better capacity utilization and a higher mix of specialty orders. For the nine-month period (9M-FY26), revenue stood at ₹686.8 crore with an EPS of ₹12.20. Growth is supported by a ₹100 crore self-funded expansion in Dahej, expected to commission in H1-FY27 with a ₹900 crore revenue potential.
- Achieved highest-ever quarterly sales in Q3 FY26 with revenue of ₹248.5 crore and PAT of ₹18.4 crore
- EBITDA margins improved to 10.42% in Q3, supported by operating leverage and specialty order mix
- Investing ₹100 crore via internal accruals for a new 40,000 MTPA Dahej facility, targeting ₹900 crore in potential revenue
- Strategic shift to increase non-rubber segment revenue from 15% to 30% over the next few years
- Dominant market position with ~30% share in India and serving 9 out of the top 10 global tyre manufacturers
J.G. Chemicals reported a standalone revenue of ₹704.63 million for Q3 FY26, a 16.7% increase compared to ₹603.71 million in Q3 FY25. Net profit for the quarter rose slightly by 6.2% YoY to ₹37.56 million, although it witnessed a sequential decline from ₹41.41 million in the preceding quarter. For the nine-month period ended December 2025, the company achieved a total income of ₹2,132.58 million and a net profit of ₹142.64 million. The results reflect steady operational performance in the zinc-based products segment despite rising expenses.
- Standalone Revenue from operations grew 16.7% YoY to ₹704.63 million in Q3 FY26.
- Net Profit for the quarter stood at ₹37.56 million, showing a 6.2% YoY growth but a 9.3% QoQ decline.
- Total expenses for the quarter increased to ₹690.11 million from ₹582.79 million in the year-ago period.
- Nine-month (9M FY26) PAT reached ₹142.64 million, up from ₹136.60 million in 9M FY25.
- Basic and Diluted EPS for the quarter was ₹0.96 (not annualized).
J.G. Chemicals Limited has announced its Q3 FY2025-26 post-results conference call scheduled for February 16, 2026, at 4:00 PM IST. The call will feature top management, including the MD & CEO and CFO, discussing the company's financial and operational performance. This is a standard regulatory filing to facilitate analyst and institutional investor interaction. The company has clarified that no unpublished price sensitive information (UPSI) will be shared during the meeting.
- Earnings call scheduled for Monday, February 16, 2026, at 4:00 PM IST
- Management to discuss Q3 FY2025-26 operational and financial performance
- Key speakers include MD & CEO Anirudh Jhunjhunwala and CFO Anuj Jhunjhunwala
- Call hosted by PhillipCapital (India) Private Limited with universal dial-in access
J.G. Chemicals Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Kfin Technologies Limited, confirms the processing of dematerialization and rematerialization requests for the quarter ended December 31, 2025. This is a standard regulatory requirement for listed companies in India to ensure the integrity of shareholding records. No significant financial or operational changes were reported in this specific filing.
- Quarterly compliance certificate submitted for the period ending December 31, 2025.
- Certificate issued by Registrar and Share Transfer Agent, Kfin Technologies Limited.
- Confirms processing of dematerialization and rematerialization requests as per SEBI norms.
- Information submitted to both National Stock Exchange (NSE) and BSE Limited.
J.G. Chemicals Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading Regulations. This routine measure is taken ahead of the declaration of the company's un-audited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are officially disclosed. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure commences on January 1, 2026
- Closure is related to the un-audited financial results for the quarter ending December 31, 2025
- Window will reopen 48 hours after the financial results are declared to the exchanges
- Restriction applies to all Designated Persons and their immediate relatives under PIT Regulations
J.G.Chemicals Limited is scheduled to meet with analysts and institutional investors on December 17, 2025. The meeting will be held virtually. The company has informed the exchange about this schedule as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No unpublished price-sensitive information (UPSI) is expected to be shared during the meeting.
- Analyst/Institutional Investor meeting scheduled on December 17, 2025
- Meeting to be held virtually
- Disclosure under Regulation 30(6) of SEBI Regulations, 2015
- CIN: L24100WB2001PTC093380
Financial Performance
Revenue Growth by Segment
The company derives approximately 95-98% of its revenue from Zinc Oxide variations. Total income grew 27% year-on-year from INR 675.4 crore in FY24 to INR 858 crore in FY25. For H1 FY26, consolidated revenue from operations reached INR 438.3 crore, representing a 5.7% growth compared to H1 FY25. Zinc Sulphate is being introduced to diversify the portfolio, though it currently represents a small fraction of total sales.
Geographic Revenue Split
The company operates three units in West Bengal (Belur and Howrah) with a 16,200 MT capacity and a unit in Andhra Pradesh (Nellore) with 43,704 MT capacity for Zinc Oxide and 10,080 MT for Zinc Sulphate. A new greenfield facility is being established in Gujarat to target the western market, with a revenue potential of INR 900 crore.
Profitability Margins
Net Profit Margin improved significantly from 6.73% in FY24 to 10.6% in FY25, a 387 bps increase. However, H1 FY26 PAT margin stood at 7.16%, a decline of 80 bps YoY. Return on Net Worth (RoNW) increased from 8.16% in FY24 to 14.52% in FY25, reflecting better capital efficiency.
EBITDA Margin
EBITDA margin was 11.34% in FY25, up 339 bps from 7.95% in FY24. For H1 FY26, the EBITDA margin was 10.29%, a 117 bps decline from 11.46% in H1 FY25. Q2 FY26 saw a marginal 0.7% decline in EBITDA margin to 9.94% due to the consumption of high-cost inventory caused by shipping delays.
Capital Expenditure
The company is undertaking a greenfield capex of approximately INR 100 crore in Gujarat over the next four fiscals (phased manner). This project is being funded entirely through internal accruals, maintaining a debt-free status.
Credit Rating & Borrowing
The company maintains a 'Strong' liquidity profile with a CRISIL rating outlook of 'Stable'. Borrowing costs are minimal as the company is virtually debt-free with a Debt-Equity ratio of 0.00 as of March 31, 2025. Bank limit utilization averaged only 4% to 9% during 2024-2025.
Operational Drivers
Raw Materials
Zinc (virgin zinc and zinc scrap for recycling) is the primary raw material, accounting for the bulk of the cost of goods sold. The company is the largest recycler of zinc in India.
Import Sources
Not explicitly disclosed by country, but the company manages a global supply chain and recently faced shipping delays that impacted inventory costs.
Capacity Expansion
Current combined capacity for Zinc Oxide is 59,904 MTPA (16,200 MT in West Bengal and 43,704 MT in Andhra Pradesh). A new 40,000 MTPA greenfield facility is being set up in Gujarat to manufacture zinc chemicals including zinc oxides and zinc sulphates.
Raw Material Costs
Raw material costs are highly sensitive to LME zinc prices. While a pass-through mechanism exists, sharp price declines (like the 280 bps margin drop in Q1 FY24) or shipping-related inventory cost spikes (Q2 FY26) directly impact profitability.
Manufacturing Efficiency
The company maintains a lean inventory holding period and has improved its working capital cycle. Interest coverage ratio improved drastically from 13.36 in FY24 to 107.13 in FY25 due to debt reduction.
Logistics & Distribution
The company is expanding geographically to Gujarat to optimize distribution to the tyre and chemical hubs in Western India.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth will be driven by the commissioning of the Gujarat greenfield facility (INR 900 Cr revenue potential), diversification into high-margin Zinc Sulphate for the fertilizer industry, and increasing wallet share with existing tyre and rubber customers. The company aims for a revenue growth rate of more than 20% to trigger credit rating upgrades.
Products & Services
Zinc Oxide (used in tyres, ceramics, paints, pharma) and Zinc Sulphate (used in fertilizers).
Brand Portfolio
JG Chemicals, BDJ Oxides (subsidiary).
New Products/Services
Zinc Sulphate and other value-added zinc chemicals are being introduced to reduce product concentration risk.
Market Expansion
Expansion into the South Indian fertilizer market via the Nellore plant and the Western Indian industrial hub via the upcoming Gujarat plant.
Market Share & Ranking
JG Chemicals is India's largest zinc oxide manufacturer with approximately 30% market share.
External Factors
Industry Trends
The industry is seeing a shift toward value-added zinc chemicals and increased recycling. The tyre industry remains the primary driver, currently benefiting from a revival in automobile demand.
Competitive Landscape
JG Chemicals is the market leader in a fragmented industry, competing with smaller regional players and virgin zinc oxide producers.
Competitive Moat
The company's moat is built on its 30% market share, status as the largest zinc recycler in India, and 30+ years of promoter experience, which fosters deep relationships with major tyre manufacturers.
Macro Economic Sensitivity
Highly sensitive to automobile industry health; GST reductions in September 2025 led to a pickup in demand for the tyre segment.
Consumer Behavior
Increased demand for automobiles and industrial rubber products directly drives demand for the company's zinc oxide.
Geopolitical Risks
Global shipping delays and logistics disruptions impact inventory costs and supply chain stability.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental norms for chemical manufacturing and recycling. GST rate changes on automobiles indirectly affect demand.
Environmental Compliance
The company focuses on zinc recycling, which aligns with environmental sustainability goals.
Taxation Policy Impact
Effective tax rate is approximately 25-26% based on PBT of INR 42.2 crore and tax of INR 10.8 crore in H1 FY26.
Risk Analysis
Key Uncertainties
Volatility in zinc prices (commodity risk) and high dependence on the cyclical tyre industry (80-90% of revenue) are the primary risks.
Geographic Concentration Risk
Currently concentrated in West Bengal and Andhra Pradesh; Gujarat expansion is intended to mitigate this.
Third Party Dependencies
High dependency on the tyre industry as the primary end-user.
Technology Obsolescence Risk
Not a major immediate risk given the essential nature of zinc oxide in rubber vulcanization.
Credit & Counterparty Risk
Low risk given the established relationships with large, reputable tyre and pharmaceutical companies.