Dai-ichi Karkaria to Double Alkoxylation Capacity at Dahej Plant with Rs. 10 Crore Investment

1 min read     Updated on 09 May 2026, 10:52 AM
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Dai-ichi Karkaria Limited has informed BSE of a planned Alkoxylation capacity expansion at its Dahej Plant, targeting an addition of approximately 5000 MT per annum — equal to its existing capacity — within Financial Year 2026-27. The expansion requires an investment of Rs. 10 crores, to be financed entirely through internal accruals. The move is driven by near-full utilisation of existing capacity, which currently stands at approximately 95%. The disclosure was made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015.

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Dai-ichi Karkaria Limited has formally notified BSE of a capacity expansion at its Dahej Plant, pursuant to Regulation 30(4)(d) read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation, filed on May 9, 2026, pertains to the expansion of the company's Alkoxylation project and was accompanied by a detailed annexure as required under the applicable SEBI Master Circular.

Alkoxylation Capacity Set to Double at Dahej

The company's existing Alkoxylation capacity at the Dahej Plant stands at approximately 5000 MT per annum, depending on product mix, and is currently operating at approximately 95% utilisation. The proposed expansion will add an equivalent capacity of approximately 5000 MT per annum, effectively doubling the total installed Alkoxylation capacity at the facility. The following table summarises the key details of the expansion as disclosed in the regulatory filing:

Parameter: Details
Existing Capacity – Alkoxylation: Approx. 5000 MT per annum (depending on product mix)
Existing Capacity Utilisation: Approx. 95%
Additional Capacity – Alkoxylation: Approx. 5000 MT per annum (depending on product mix)
Target Completion Period: Financial Year 2026-27
Investment Required: Rs. 10 crores
Mode of Financing: Internal accruals

Investment and Financing

The total investment required for the capacity addition is Rs. 10 crores, which the company intends to fund entirely through internal accruals. This approach indicates that the expansion will be undertaken without recourse to external debt or equity financing, relying on the company's internally generated resources.

Rationale for Expansion

As stated in the regulatory disclosure, the rationale for the capacity addition is that the current Alkoxylation capacity is fully utilised, and additional capacity expansion will be required to support future growth. The near-complete utilisation rate of approximately 95% underscores the operational basis for the investment decision.

The intimation was signed by Ankit Shah, Company Secretary and Compliance Officer of Dai-ichi Karkaria Limited, and submitted to BSE Limited on May 9, 2026.

Historical Stock Returns for Dai-ichi Karkaria

1 Day5 Days1 Month6 Months1 Year5 Years
+2.06%-0.10%-0.23%-0.23%-0.23%-0.23%

Which specific customer segments or end-use industries is Dai-ichi Karkaria targeting with the additional 5000 MT of Alkoxylation capacity, and are there any long-term supply agreements already in place?

Given that the expansion is fully funded through internal accruals, what does this imply about Dai-ichi Karkaria's cash flow generation capacity, and could further expansions beyond FY2026-27 be financed similarly?

How does Dai-ichi Karkaria's Dahej Alkoxylation expansion compare to capacity additions being undertaken by competitors in the specialty surfactants and ethoxylation space in India?

Dai-ichi Karkaria FY26 Net Loss, Dividend Cut to Rs. 1.50

6 min read     Updated on 08 May 2026, 04:49 PM
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Dai-ichi Karkaria Limited reported a net loss of Rs. 54 lakhs for FY26, a sharp decline from the net profit of Rs. 618 lakhs in the previous year, as revenue fell to Rs. 16,130 lakhs. The company's standalone and consolidated results reflected a challenging year with reduced profitability and a one-time impact from the new Labour Code. Consequently, the Board recommended a final dividend of Rs. 1.50 per share, down from Rs. 3.50 in FY25.

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Dai-ichi Karkaria Limited's Board of Directors approved the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The results, audited by B S R & Co. LLP with an unmodified opinion, reflect a challenging year for the specialty chemicals company, with both revenue and profitability declining on a year-on-year basis. The Board also recommended a final dividend of Rs. 1.50 per share for FY26, subject to shareholder approval at the 66th Annual General Meeting.

Standalone Financial Performance

Dai-ichi Karkaria's standalone revenue from operations declined to Rs. 16,130 lakhs in FY26 from Rs. 18,138 lakhs in FY25. Total income, including other income of Rs. 735 lakhs (FY25: Rs. 446 lakhs), stood at Rs. 16,865 lakhs compared to Rs. 18,584 lakhs in the prior year. Total expenses for FY26 were Rs. 16,892 lakhs against Rs. 17,890 lakhs in FY25, resulting in a loss before exceptional items of Rs. 27 lakhs versus a profit of Rs. 694 lakhs in FY25.

The following table summarises the key standalone financial metrics:

Metric: FY26 (Audited) FY25 (Audited)
Revenue from Operations: Rs. 16,130 lakhs Rs. 18,138 lakhs
Other Income: Rs. 735 lakhs Rs. 446 lakhs
Total Income: Rs. 16,865 lakhs Rs. 18,584 lakhs
Total Expenses: Rs. 16,892 lakhs Rs. 17,890 lakhs
(Loss)/Profit before Exceptional Items: Rs. (27) lakhs Rs. 694 lakhs
Exceptional Items (net): Rs. (20) lakhs Rs. 153 lakhs
(Loss)/Profit after Exceptional Items before Tax: Rs. (47) lakhs Rs. 847 lakhs
Net (Loss)/Profit for the Period: Rs. (54) lakhs Rs. 618 lakhs
Total Comprehensive (Loss)/Income: Rs. (71) lakhs Rs. 608 lakhs
Basic & Diluted EPS (Rs. 10/- each, not annualised): Rs. (0.72) Rs. 8.29

Among key expense line items, cost of materials consumed declined to Rs. 10,524 lakhs from Rs. 11,524 lakhs, while employee benefits expenses rose to Rs. 2,566 lakhs from Rs. 2,277 lakhs. Finance costs reduced significantly to Rs. 95 lakhs from Rs. 183 lakhs. An exceptional item of Rs. 20 lakhs was recognised during FY26 on account of the one-time impact of the new Labour Code notified by the Government of India on November 21, 2025, consolidating 29 existing labour laws.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects total assets of Rs. 20,155 lakhs compared to Rs. 20,964 lakhs as at March 31, 2025. Total non-current assets stood at Rs. 13,650 lakhs (FY25: Rs. 13,952 lakhs), while total current assets were Rs. 6,505 lakhs (FY25: Rs. 7,012 lakhs). Equity attributable to equity holders stood at Rs. 16,214 lakhs, with equity share capital of Rs. 745 lakhs and other equity of Rs. 15,469 lakhs. Total current liabilities decreased to Rs. 3,625 lakhs from Rs. 4,154 lakhs.

Quarterly Performance — Q4 FY26 vs Q4 FY25

For the quarter ended March 31, 2026, standalone revenue from operations was Rs. 4,125 lakhs, significantly lower than Rs. 7,006 lakhs in the corresponding quarter of FY25. The company reported a standalone net loss of Rs. 89 lakhs for Q4 FY26, compared to a net profit of Rs. 491 lakhs in Q4 FY25. Basic and diluted EPS for Q4 FY26 stood at Rs. (1.19) versus Rs. 6.58 in Q4 FY25.

Metric: Q4 FY26 Q3 FY26 (Unaudited) Q4 FY25
Revenue from Operations: Rs. 4,125 lakhs Rs. 3,781 lakhs Rs. 7,006 lakhs
Total Income: Rs. 4,244 lakhs Rs. 3,884 lakhs Rs. 7,147 lakhs
Total Expenses: Rs. 4,334 lakhs Rs. 4,086 lakhs Rs. 6,494 lakhs
Net (Loss)/Profit: Rs. (89) lakhs Rs. (150) lakhs Rs. 491 lakhs
EPS (not annualised): Rs. (1.19) Rs. (2.01) Rs. 6.58

Consolidated Financial Performance

On a consolidated basis, which includes subsidiary Dai-Ichi Gosei Chemicals (India) Limited and joint venture ChampionX Dai-Ichi India Private Limited, revenue from operations for FY26 was Rs. 16,130 lakhs (FY25: Rs. 18,138 lakhs). Total consolidated income stood at Rs. 16,595 lakhs versus Rs. 18,584 lakhs in FY25. After accounting for a share of profit in joint ventures of Rs. 250 lakhs (FY25: Rs. 284 lakhs), the consolidated net loss after non-controlling interest was Rs. 74 lakhs for FY26 compared to a net profit of Rs. 902 lakhs in FY25. Consolidated total comprehensive loss was Rs. 92 lakhs versus comprehensive income of Rs. 890 lakhs in FY25. Consolidated basic and diluted EPS stood at Rs. (0.99) for FY26 against Rs. 12.11 in FY25. Consolidated total assets were Rs. 22,404 lakhs as at March 31, 2026 compared to Rs. 23,234 lakhs as at March 31, 2025.

Dividend and Segment Information

The Board of Directors recommended a final dividend of 15%, i.e., Rs. 1.50 per equity share of face value Rs. 10/- each for FY26, compared to Rs. 3.50 per share in the previous year. The dividend is subject to shareholder approval at the ensuing 66th Annual General Meeting, and will be paid within 30 days from the date of declaration. The company operates in a single reportable segment — Specialty Chemicals — as concluded by management pursuant to Ind AS 108. The company has confirmed it is not a Large Corporate entity as per the applicable SEBI Master Circular.

Historical Stock Returns for Dai-ichi Karkaria

1 Day5 Days1 Month6 Months1 Year5 Years
+2.06%-0.10%-0.23%-0.23%-0.23%-0.23%

How quickly can Dai-ichi Karkaria restore export demand and order visibility once geopolitical disruptions stabilize, and which international markets are most critical to its revenue recovery?

Will the newly commissioned agrochemical application laboratory translate into meaningful revenue contribution in FY27, and how soon could customer trials lead to commercial-scale orders?

Given the sharp EBITDA margin compression from 8% to 2%, what specific cost optimization or pricing strategies is management considering to return to profitability in FY27?

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