DMCC Speciality Chemicals Limited has filed the transcript of its earnings conference call held on Tuesday, May 19, 2026, regarding the financial performance of Q4 FY26. The filing was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript is accessible via the company's official website.

Earlier, the company announced its audited financial results for the quarter and full year ended March 31, 2026. For Q4, the company reported a Profit After Tax (PAT) of ₹7.65 Cr, rising 18.27% year-on-year from ₹6.47 Cr. Revenue from operations stood at ₹177.64 Cr, surging 41.87% YoY from ₹125.22 Cr. The Board of Directors recommended a final dividend of 25% (₹2.50 per equity share of ₹10 each) for FY26, subject to shareholder approval.

Q4 Financial Highlights

The company delivered broad-based growth across key metrics in Q4. EBITDA rose 14.73% YoY to ₹17.86 Cr, while EBITDA margins stood at 10.05%. Profit Before Tax grew 15.79% YoY to ₹10.81 Cr. Basic and Diluted EPS for Q4 stood at ₹3.07.

Full Year FY26 Performance

For the full year FY26, PAT grew 26.95% to ₹27.33 Cr from ₹21.53 Cr in FY25. Annual revenue from operations rose 34.84% to ₹581.58 Cr. Annual EBITDA rose 10.23% to ₹64.33 Cr, while EBITDA margins contracted 245 basis points to 11.04%.

Management Commentary

During the earnings call, Managing Director and CEO Mr. Bimal Goculdas highlighted that the Middle East crisis significantly impacted sulfur availability and pricing, with about 50% of global sulfur trade flowing through the Strait of Hormuz. Consequently, the Roha plant operated at reduced capacity (approximately 60%) for around 15 days in March to manage raw material shortages, while the Dahej plant operated normally using domestic sourcing.

Regarding the boron chemicals business, the first half of the year saw production losses due to supply disruption from Turkey, but operations resumed at full capacity in the second half. The company has also replaced most of its reduced European business with orders from Latin America and is developing markets in Japan, Korea, and China.

Corporate Developments

The board recommended a final dividend of ₹2.50 per share for FY26. The company's 105th Annual General Meeting is scheduled for Friday, September 11, 2026, via Video Conferencing. Additionally, the board appointed Shri S. S. Dongare as Cost Auditor for FY27.

DMCC Speciality Chemicals has received an appeal order regarding a GST demand of ₹1.05,98,933. The order, dated April 27, 2026, was issued by the Additional Commissioner (Appeals Raigad) and received by the company on May 19, 2026. The communication was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Appeal

The appeal was filed by the Department against an Order-In-Original passed by the Assistant Commissioner, Division-III, CGST & Central Excise, Raigad Commissionerate. The original order, dated December 20, 2023, had dropped the demand for the inadmissible ITC amount. The department contended that the adjudicating authority incorrectly interpreted the explanation to Section 17(5) of the CGST Act, 2017, by treating capitalization as the sole criterion for deciding the admissibility of the credit.

Order Details and Violations

The appellate authority set aside the previous order to the extent it dropped the demand. The ITC amounting to ₹1.05,98,933 has been held inadmissible under Section 17(5)(c) of the CGST Act, 2017. The authority has ordered the recovery of this amount under Section 73 of the CGST Act, 2017, along with applicable interest and penalty.

Company Response and Impact

DMCC Speciality Chemicals stated that, based on its assessment, the said demand is not maintainable. The company is currently in the process of preferring an appeal against the order. Management has indicated that the order has no material impact on the financials, operations, or other activities of the company.