Epigral Limited’s Board of Directors has approved a ₹600 crore capital expenditure to establish a new manufacturing facility at its existing site in Dahej, Gujarat. The project, aimed at expanding the company’s product portfolio and meeting growing demand, will add 1,25,000 tonnes per annum (TPA) of capacity for Epoxy Resin & Formulations, with operations targeted for the second half of FY2028.

Project Details and Financing

The expansion involves setting up both an Epoxy Resin & Formulations unit and a Multi-Purpose Plant (MPP). While the specific capacity addition is attributed to the epoxy segment, the MPP will also become operational by H2FY2028. The total estimated investment of ₹600 crore will be financed through a mix of debt and internal accruals, preserving liquidity while leveraging balance sheet strength for growth.

Strategic Rationale

The decision underscores Epigral’s strategy to diversify its product offerings beyond existing lines. By integrating a multi-purpose plant alongside the dedicated epoxy resin facility, the company aims to serve a broader range of end-use applications. The location in Dahej, a established chemical hub, provides logistical advantages for raw material sourcing and distribution.

Regulatory Disclosure

The approval was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III and SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Gaurang Trivedi, Company Secretary & Compliance Officer, signed the disclosure submitted to the National Stock Exchange of India Limited and BSE Limited on July 27, 2026.

Epigral Limited reported a 25% year-on-year increase in net profit after tax (PAT) to ₹99 crore for the quarter ended June 30, 2026, driven by a 15% rise in revenue from operations to ₹709 crore. The growth was supported by a 5% increase in sales volume and improved realizations, allowing the company to maintain an EBITDA margin of 25%. This performance underscores the resilience of India’s specialty chemicals sector amid macroeconomic volatility, including geopolitical tensions affecting raw material prices.

The financial filing was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Gaurang Trivedi, Company Secretary & Compliance Officer of Epigral Limited, signed the press release on July 27, 2026. The un-audited results are available on the company’s website under the Investor Relations section.

Financial Performance Metrics

Maulik Patel, Chairman and Managing Director, attributed the growth to Epigral’s diversified product mix, which helped mitigate headwinds such as fluctuating raw material costs and shipment delays. Despite these challenges, operating conditions have stabilized, with overall plant utilization standing above 80%. The return on capital employed (ROCE) declined to 16% from 24% in the prior year quarter, primarily due to lower earnings before interest and tax (EBIT) in the trailing twelve months and significant capital work in progress. Net Debt/EBITDA stood at 0.8x as on June 30, 2026.

Strategic Expansion and Capex

The Board approved a strategic expansion involving an estimated capex of ₹600 crore. This investment will fund two key projects:

• Epoxy Resin & Formulations Plant: A new facility with a production capacity of 1,25,000 TPA. This move represents forward integration into advanced materials, catering to sectors such as renewable energy, automotive, electronics, and infrastructure.
• Multi-Purpose Plant (MPP): Designed to manufacture downstream products of the Epichlorohydrin (ECH) and Chlorotoluenes value chains, addressing domestic demand for pharmaceutical and agrochemical intermediates.

Both projects are expected to be commissioned in H2FY28. To validate product quality and optimize processes, Epigral is establishing pilot plant facilities for both units, targeted for operation by Q2FY27. Notably, more than 50% of the raw material value for the Epoxy Resin project will be sourced internally from Epigral’s existing Dahej complex, leveraging its backward integration advantages.

Additionally, capex for enhancing CPVC Resin, ECH, and Wind Solar Hybrid Power Plant capacities is moving as per schedule and is expected to be commissioned within the timeline and budget. The CPVC Resin expansion will add 75,000 TPA, bringing total capacity to 1,50,000 TPA, while the ECH expansion will add 50,000 TPA, reaching 1,00,000 TPA. Both are expected to commission in Q2FY27.

What the Numbers Show

The divergence between revenue growth and ROCE highlights the impact of ongoing capital intensity on short-term returns. While top-line growth accelerated to 15%, the ROCE compression to 16% reflects the drag from substantial capital work in progress. However, the maintenance of a 25% EBITDA margin amidst geopolitical volatility underscores pricing power and operational leverage. The planned ₹600 crore capex aims to enhance this margin profile further through internal sourcing, where over half of the raw materials for the new Epoxy Resin unit will be produced in-house, reducing external dependency and cost variability. With derivatives and specialty chemicals expected to constitute ~70% of revenue by FY28E, Epigral is strategically transitioning away from traditional chlor-alkali products.