NewsEpigral Q4 FY26 Conference Call Transcript: Record Revenue of ₹736 Crores, EBITDA Surges 64%Epigral Q4 FY26 Conference Call Transcript: Record Revenue of ₹736 Crores, EBITDA Surges 64%
Epigral Limited's Q4 FY26 conference call transcript reveals record quarterly revenue of ₹736 crores, up 22% QoQ, with EBITDA surging 64% to ₹169 crores and PAT at ₹82 crores. Full-year FY26 revenue was ₹2,542 crores with adjusted PAT of ₹252 crores and ROCE of 16%. Management guided for 10%–12% volume growth in FY27, supported by ECH and CPVC capacity expansions commissioning in Q2 FY27, while flagging West Asia conflict-related raw material cost pressures as a key near-term risk.
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Epigral Limited has released the transcript of its Q4 FY26 results conference call, held on Saturday, 2 May 2026 at 4:30 p.m., in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule-III Part-A thereof. The filing was submitted to both the National Stock Exchange of India Limited and BSE Limited on 6 May 2026. The call was hosted by Emkay Global Financial Services Limited and moderated by Mr. Harsh Shah, with Epigral's management represented by Mr. Maulik Patel (Chairman and Managing Director), Mr. Kaushal Soparkar (Executive Director), Mr. Rakesh Agrawal (Chief Financial Officer), and Mr. Milind Kotecha (Investor Relations & Strategy).
Record Q4 FY26 Financial Performance
Epigral delivered its highest-ever quarterly revenue in Q4 FY26, driven by a strong recovery in plant utilization and volume growth. The company witnessed volume growth of 15% quarter-on-quarter, resulting in overall plant utilization above 80%. The key financial metrics for Q4 FY26 and the full year are summarised below:
| Metric: | Q4 FY26 | Q3 FY26 | Change (QoQ) |
|---|---|---|---|
| Revenue: | ₹736 crores | — | +22% |
| EBITDA: | ₹169 crores | ₹103 crores | +64% |
| EBITDA Margin: | 23% | — | Improved |
| PAT: | ₹82 crores | ₹35 crores | +134% |
| PAT Margin: | 11% | — | — |
| Metric: | FY26 | FY25 | Change (YoY) |
|---|---|---|---|
| Revenue: | ₹2,542 crores | — | -1% |
| EBITDA: | ₹567 crores | ₹711 crores | — |
| EBITDA Margin: | 22% | — | — |
| PAT (reported): | ₹330 crores | ₹357 crores | — |
| PAT (adjusted): | ₹252 crores | ₹357 crores | — |
| ROCE: | 16% | — | — |
| Net Debt: | ₹508 crores | ₹489 crores | — |
| Net Debt/EBITDA: | 0.90x | 0.70x | — |
The full-year PAT of ₹330 crores includes a one-time benefit of ₹81 crores on account of a reduction in deferred tax liability. Excluding this, adjusted PAT stood at ₹252 crores. The full-year revenue declined marginally by 1% to ₹2,542 crores, attributed to a volume drop of approximately 4% during the year. ROCE stood at 16%, and at 17% if capital work-in-progress of ₹451 crores is excluded. During the year, the company spent approximately ₹394 crores on ongoing capex and generated approximately ₹436 crores from operations.
Industry Context and Operational Recovery
Management noted that Q4 was a volatile quarter for the chemical industry. On the positive side, the US reduced reciprocal tariffs and China removed its VAT export rebates on select chemicals. However, escalation in West Asia disrupted global supply chains and tightened availability of key raw materials, creating a mixed impact across chemical segments. The company's demand recovery began from mid-November, following the completion of a major maintenance cycle — one that occurs approximately once every eight years — which had constrained caustic soda plant operations in the first half of the year. Post-maintenance, plant utilization improved from levels of 67%–70% to a range of 78%–85%. The realized ECU (Electrochemical Unit) for caustic soda in Q4 FY26 stood at approximately ₹30,000, with current ECU trending around ₹37,000 due to the impact of the West Asia conflict. Management indicated that price escalation due to the conflict would be more prominently reflected in Q1 FY27, as most Q4 orders had already been booked before the conflict's escalation.
Capacity Expansion and Product Portfolio
Epigral's capacity expansion projects for Epichlorohydrin (ECH) and CPVC are progressing on track and within budget, with commissioning expected in Q2 FY27. The ramp-up is expected to be gradual, starting at approximately 15%–20% utilization, with optimum levels — 80% for ECH and 75% for CPVC — targeted in FY28. The key expansion and utilization details are as follows:
| Parameter: | Details |
|---|---|
| ECH & CPVC Commissioning: | Q2 FY27 |
| ECH Optimum Utilization Target: | ~80% (by FY28) |
| CPVC Optimum Utilization Target: | ~75% (by FY28) |
| Chlorine Captive Consumption (Current): | ~75% |
| Chlorine Captive Consumption (Target, FY28): | ~90%–95% |
| Wind-Solar Energy Share (Current): | ~8%–9% |
| Wind-Solar Addition Planned: | ~19.50 megawatts |
| Wind-Solar Share (Post Expansion): | ~15% |
The Chlorotoluene facility, commissioned in March 2025, has completed the customer approval and testing process and is witnessing gradual volume ramp-up. Management indicated that FY27 will see a sizeable contribution from Chlorotoluene, with plant utilization expected to reach approximately 40% during the year and optimum utilization of 70%–75% targeted in FY28. This product primarily serves the agrochemical and pharmaceutical segments. Regarding future greenfield expansion, management confirmed that a new project is under evaluation and an announcement is expected during the current financial year, consistent with the company's practice of announcing the next capex when the current one nears completion.
FY27 Outlook and Key Risks
Management guided for volume growth of 10%–12% in FY27, supported by the ramp-up of expanded capacities and a recovery in demand across product segments. The derivatives and specialty business contributed 54% of revenue in Q4 FY26, up from 52% in Q3 FY26. Exports account for approximately 4%–5% of total revenue, primarily to Europe. On the risk side, management highlighted that the ongoing West Asia conflict has driven energy costs up by approximately 15% and disrupted global supply chains, with stabilization expected to take at least four to five months even after a ceasefire. The company's diversified product portfolio — with approximately 60% of the basket comprising products with inelastic demand — provides resilience against price-driven demand disruptions. On the interest cost front, management noted that higher-than-guided finance costs for the full year were primarily due to mark-to-market impact on a foreign currency derivative instrument, driven by INR depreciation exceeding historical norms. The finance team is actively working to mitigate this exposure.
Disclosure Details
The transcript filing was signed by Gaurang Trivedi, Company Secretary & Compliance Officer (M. No. A22307), on behalf of Epigral Limited, headquartered at Epigral Tower, Behind Safal Profitaire, Corporate Road, Prahladnagar, Ahmedabad 380015, Gujarat, India.
How might the sustained elevation of ECU prices around ₹37,000 due to the West Asia conflict impact Epigral's EBITDA margins and competitive positioning in Q1 FY27 and beyond?
What specific greenfield expansion project is Epigral likely to announce in FY27, and which product segments or geographies could it target to diversify beyond its current chlor-alkali derivatives portfolio?
Given that exports currently account for only 4–5% of revenue, how could the removal of China's VAT export rebates on select chemicals create opportunities for Epigral to expand its international market share in Europe or other regions?
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