Chemplast Sanmar Limited reported a consolidated net loss of INR280 crores for the financial year ended March 31, 2026, on revenue of INR4,224 crores. The company recorded an impairment loss of INR898 crores on its investment in the Suspension PVC business, citing persistent price pressures, excess global capacities, and regulatory challenges. The Board has constituted a committee of independent directors to examine strategic priorities, including potential reorganization and M&A opportunities, to enhance long-term value creation.

Financial Performance

For the fourth quarter of FY26, the company reported consolidated revenue of INR1,256 crores, a 9% year-on-year increase. EBITDA stood at INR194 crores compared to INR37 crores in the same quarter of the previous year. The net loss for the quarter was INR45 crores. As of March 31, 2026, the company's consolidated net debt was INR1,419 crores.

Operational Highlights

The Specialty segment recorded sales of INR475 crores in Q4 FY26, driven by a 17% year-on-year volume increase in Paste PVC. The Cuddalore Paste PVC facility operated at 100% capacity during the year. Commercial production of R32 refrigerant gas commenced at the 2 kt swing plant in Mettur, with commissioning of new plants expected in phases. The Custom Manufactured Chemicals business faced a slowdown in the global agrochemical market but maintains a strong order book for FY27 with 45-plus molecules in development.

Strategic and Regulatory Developments

The company received final findings from the Directorate General of Trade Remedies (DGTR) regarding anti-dumping duty investigations against imports from the European Union and Japan, with implementation expected in the first half of FY27. Management noted that regulatory support for the domestic PVC industry has weakened, including the rescinding of Quality Control Orders and a recent reduction in customs duty. Consequently, the company assessed the carrying value of its investments under Ind AS 36, resulting in the INR898 crore impairment. Additionally, CCVL recorded an exceptional charge of INR150 crores for onerous contracts and inventory write-downs, expected to be reversed in the current financial year.

chemplast sanmar has commenced commercial production from Phase III of Multi-Purpose Production Block III at its Custom Manufactured Chemicals Division in Berigai. The company initiated operations at this facility on May 28, 2026. This expansion is intended to enhance the manufacturing capabilities for custom chemicals.

The notification was submitted to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was recorded on May 28, 2026, at 5:38 PM IST.

The new production block is located at the Custom Manufactured Chemicals Division in Berigai. This facility is part of the company's broader strategy to scale up its manufacturing infrastructure.

The commencement of Phase III operations follows the completion of necessary infrastructure and testing protocols. The company has not disclosed specific capacity details or investment figures for this phase in the current filing.