SRD - Shankar Lal Ram.
📢 Recent Corporate Announcements
Shankar Lal Rampal Dye-Chem Limited (SRD) has successfully renewed its credit facilities with ICICI Bank to ensure continued liquidity for operations. The total facility is valued at INR 315 million, which includes a primary working capital limit of INR 290 million. Additionally, the board approved a derivative facility of INR 25 million as part of the overall package. This renewal is a standard procedure to maintain the company's financial flexibility and support its business cycle.
- Total credit facility renewed with ICICI Bank for an overall limit of INR 315 million.
- Working capital facility specifically renewed at INR 290 million to support daily operations.
- Includes a derivative facility component of INR 25 million for risk management.
- The board meeting was conducted efficiently, concluding within 15 minutes on February 23, 2026.
Shankar Lal Rampal Dye-Chem reported a weak Q3 FY26 with revenue from operations falling 11.1% YoY to ₹90.54 crore. Net profit for the quarter saw a sharper decline of 27.2% YoY, dropping to ₹2.08 crore from ₹2.86 crore in the same period last year. On a sequential basis, revenue and profit also declined by 19.7% and 12.0% respectively. While nine-month revenue grew by 10.3% to ₹325.50 crore, the corresponding net profit dipped slightly to ₹8.69 crore, indicating margin pressure.
- Quarterly Revenue from Operations decreased to ₹9,053.89 Lakhs from ₹10,189.20 Lakhs YoY.
- Net Profit for Q3 FY26 stood at ₹208.42 Lakhs, down from ₹286.31 Lakhs in Q3 FY25.
- Earnings Per Share (EPS) dropped to ₹0.33 for the quarter compared to ₹0.45 a year ago.
- Nine-month revenue (Apr-Dec 2025) increased to ₹32,550.39 Lakhs from ₹29,503.67 Lakhs in the previous year.
- Total expenses for the 9-month period rose to ₹31,388.04 Lakhs from ₹28,313.74 Lakhs, impacting bottom-line growth.
Shankar Lal Rampal Dye-Chem Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ended December 31, 2025. The certificate, issued by Cameo Corporate Services Limited, confirms that all securities received for dematerialization were processed and confirmed to the depositories. It further validates that physical certificates were mutilated and cancelled after due verification. This filing is a standard administrative procedure to ensure the accuracy of the company's shareholding records.
- Compliance certificate submitted for the quarter ending December 31, 2025.
- Confirmation provided by Registrar & Share Transfer Agent, Cameo Corporate Services Limited.
- Securities received for dematerialization were confirmed to depositories within stipulated time limits.
- Physical security certificates were mutilated and cancelled after verification as per SEBI norms.
Shankar Lal Rampal Dye-Chem Limited (SRD) has approved the acquisition of immovable property for a total consideration of up to ₹1.75 crore. This new approval supersedes a previous board resolution from November 13, 2025, which had authorized a purchase price below ₹1 crore. The upward revision in the budget is due to updated commercial terms for the transaction. The company has authorized its Executive Directors to finalize the legal documentation and execute the necessary deeds to complete the acquisition.
- Board approved acquisition of immovable property for a total consideration of up to ₹1.75 crore.
- The decision supersedes a previous approval from November 2025 that capped the amount at ₹1 crore.
- The budget increase reflects revised commercial terms for the specific property acquisition.
- Executive Directors have been authorized to finalize and execute all necessary legal agreements.
Shankar Lal Rampal Dye-Chem 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 declaration of the company's un-audited financial results for the quarter ending December 31, 2025. The window will remain closed for all directors, KMPs, and designated persons until 48 hours after the board meeting results are made public. The specific date for the board meeting to discuss the Q3 results will be communicated at a later date.
- Trading window closure commences on January 1, 2026.
- Closure is related to the un-audited financial results for the quarter ended December 31, 2025.
- The window will reopen 48 hours after the conclusion of the upcoming board meeting.
- Restriction applies to all promoters, directors, KMPs, and designated employees.
Financial Performance
Revenue Growth by Segment
The company operates in a single primary segment: Trading in Dyes & Chemicals. Revenue from operations for Q2 FY26 reached INR 112.70 Cr, representing a growth of 26.7% YoY compared to INR 88.95 Cr in Q2 FY25. For the half-year ended September 2025, revenue grew 27.8% YoY to INR 228.13 Cr.
Geographic Revenue Split
Not specifically disclosed, though operations are concentrated in Bhilwara, Rajasthan, serving the regional textile and chemical hubs.
Profitability Margins
Net Profit Margin (NPM) for Q2 FY26 stood at 5.34%, a contraction from 7.30% in Q2 FY25. This decline is primarily due to a 22.6% increase in purchase costs and higher finance charges. Profit After Tax (PAT) for Q2 FY26 was INR 6.01 Cr, down 7.4% YoY from INR 6.50 Cr.
EBITDA Margin
EBITDA margin for Q2 FY26 was 7.33% (INR 8.26 Cr), down from 10.19% (INR 9.07 Cr) in Q2 FY25. The margin compression reflects tighter spreads in the chemical trading market and increased operational overheads.
Capital Expenditure
Property, Plant, and Equipment stood at INR 1.28 Cr as of September 30, 2025, compared to INR 1.05 Cr in March 2025, indicating a modest maintenance CAPEX of INR 0.23 Cr.
Credit Rating & Borrowing
Total borrowings as of September 30, 2025, were INR 18.60 Cr, comprising INR 17.61 Cr in short-term and INR 0.99 Cr in long-term debt. Finance costs increased 111% YoY to INR 19.42 Lakhs for the quarter, reflecting higher utilization of working capital limits.
Operational Drivers
Raw Materials
The primary cost driver is 'Purchase of Stock in Trade' (Dyes and Chemicals), which accounts for 96.7% of total revenue (INR 109.05 Cr in Q2 FY26).
Capacity Expansion
As a trading entity, the company does not have traditional manufacturing capacity; however, it manages a high volume of inventory valued at INR 16.60 Cr to support its distribution network.
Raw Material Costs
Purchase costs for stock-in-trade were INR 109.05 Cr in Q2 FY26, up 22.6% YoY. Procurement strategies focus on bulk purchasing to maintain trading margins in a volatile chemical pricing environment.
Manufacturing Efficiency
Not applicable as the company is a trading entity; efficiency is measured by inventory turnover.
Logistics & Distribution
Distribution costs are integrated into 'Other Expenses' (INR 84.39 Lakhs), supporting the delivery of chemicals to regional industrial customers.
Strategic Growth
Expected Growth Rate
27.80%
Growth Strategy
The company aims to achieve growth by expanding its trading portfolio within the dyes and chemicals sector and deepening its penetration in the Rajasthan textile market. The 27.8% H1 revenue growth suggests aggressive market share acquisition despite margin pressure.
Products & Services
Industrial Dyes and Chemicals used primarily in the textile processing and manufacturing industries.
Brand Portfolio
Shankarlal Rampal Dye-Chem Limited.
Market Expansion
The company is focusing on strengthening its presence in the Bhilwara industrial cluster, which is a major hub for textile manufacturing in India.
Strategic Alliances
No new JVs or alliances reported; the company operates as a standalone entity with no subsidiaries.
External Factors
Industry Trends
The chemical trading industry is shifting toward organized players who can provide consistent supply and credit; SRD is positioning itself by maintaining a large balance sheet with INR 136.56 Cr in current assets.
Competitive Landscape
Competes with both unorganized local traders and larger national chemical distributors in the Rajasthan region.
Competitive Moat
The company's moat is built on its localized distribution network and long-standing relationships in the Bhilwara textile hub. This is sustainable due to the high cost for outside competitors to establish similar local logistics and credit trust.
Macro Economic Sensitivity
Highly sensitive to the textile industry's health and industrial chemical demand; a slowdown in textile exports would directly reduce demand for the company's dyes.
Consumer Behavior
Industrial demand is shifting toward eco-friendly dyes, which may require the company to adjust its product portfolio in the future.
Geopolitical Risks
Global chemical price volatility driven by geopolitical tensions can impact procurement costs and trading margins.
Regulatory & Governance
Industry Regulations
Operations are subject to chemical handling regulations and GST compliance for inter-state and intra-state trading.
Environmental Compliance
As a trader, the company has lower direct environmental compliance costs compared to manufacturers, though it must adhere to chemical storage and handling safety norms.
Taxation Policy Impact
The effective tax rate for Q2 FY26 was approximately 25.1%, with a current tax provision of INR 2.02 Cr on PBT of INR 8.03 Cr.
Legal Contingencies
No pending material litigation or court cases were disclosed in the financial notes.
Risk Analysis
Key Uncertainties
The most significant risk is the high level of trade receivables (INR 93.26 Cr), which represents 83% of quarterly revenue. Any significant default by top clients would severely impact the company's equity base of INR 58.65 Cr.
Geographic Concentration Risk
High concentration in Rajasthan (Bhilwara), making the company vulnerable to regional economic downturns or state-specific policy changes.
Third Party Dependencies
Dependent on chemical manufacturers for consistent supply; any supply-side disruption would halt trading operations.
Technology Obsolescence Risk
Low risk of technology obsolescence as a trader, though digital transformation in procurement and inventory management is necessary for scaling.
Credit & Counterparty Risk
High credit exposure to textile units; the company's current ratio of 6.96x is heavily skewed by receivables, indicating potential liquidity constraints if collections slow down.