Epigral Limited reported a standalone net profit of ₹99.18 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 38% decline from ₹160.41 crore in the corresponding period of FY26. The drop in profitability stems from increased cost of materials consumed and the absence of a significant one-time tax benefit recorded in the prior year, even as revenue from operations grew 16% to ₹705.36 crore. Consolidated net profit stood at ₹99.74 crore, compared to ₹160.69 crore in Q1FY26. EBITDA for the quarter came in at ₹1.8B versus ₹1.6B in the year-ago period, while EBITDA margin contracted to 25.39% from 27% YoY.

The Board of Directors approved the unaudited financial results on July 27, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s. S R B C & CO LLP, the statutory auditors, issued a limited review report on the figures. The results were prepared in accordance with Ind AS 34 "Interim Financial Reporting" under Section 133 of the Companies Act, 2013.

Financial Performance

Revenue from operations rose to ₹705.36 crore in Q1FY27 from ₹606.54 crore in Q1FY26. However, total expenses increased to ₹576.28 crore from ₹508.06 crore during the same period. The cost of materials consumed surged to ₹430.18 crore from ₹318.19 crore, reflecting higher input costs in the Chloro Alkali & Derivatives segment. Finance costs decreased significantly to ₹7.22 crore from ₹23.37 crore, providing some relief to the bottom line.

The profit before tax rose 25% to ₹133.18 crore from ₹106.73 crore. However, the tax expense for Q1FY27 was ₹34.00 crore, compared to a net tax credit of ₹53.68 crore in Q1FY26. The prior year's credit included a one-time deferred tax credit of ₹80.87 crores arising from the remeasurement of deferred tax liabilities after the company opted for the reduced tax rate under Section 115BAA of the Income-tax Act, 1961.

What the Numbers Show

The divergence between the 25% rise in pre-tax profits and the 38% fall in net profit highlights the impact of non-recurring items on Epigral's bottom line. Excluding the one-time deferred tax credit of ₹80.87 crores recognized in Q1FY26, the underlying tax burden has normalized. The current quarter's effective tax rate is approximately 25.5%, aligning with the standard corporate tax regime, whereas the prior year benefited from a massive accounting adjustment. The contraction in EBITDA margin to 25.39% from 27% further reflects the pressure from higher input costs, even as EBITDA in absolute terms improved. This suggests that while operational profitability is expanding due to revenue growth outpacing expense increases, headline net profit comparisons are distorted by the prior year's exceptional tax credit.

Strategic Developments

Epigral incorporated a wholly owned subsidiary, Epigral Advanced Material Limited, on July 07, 2026, aimed at manufacturing chemicals. Additionally, the company continues its investment in renewable energy through Pro-Zeal Green Power Ten Private Limited, where it holds a 26% equity stake and has invested ₹2.13 crores in optionally convertible debentures. The associated wind-solar hybrid power plant in Gujarat is expected to commence operations in the near future.

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 strategic investment covers two new projects — an Epoxy Resin & Formulations unit with 1,25,000 tonnes per annum (TPA) capacity and a Multi-Purpose Plant (MPP) — both targeted for completion by the second half of FY2028. The company has outlined an ambitious revenue roadmap, targeting INR 500 crore in revenue by FY29 or FY30, with estimated peak revenue potential of INR 1,300 crore to INR 1,500 crore from these projects.

Project Details and Financing

The expansion involves setting up both an Epoxy Resin & Formulations unit and a Multi-Purpose Plant (MPP), with operations for both targeted to commence by H2FY2028. The total capex for FY27 and FY28 is estimated at INR 400 crore annually, financed through a mix of 60% debt and 40% internal accruals. This structured financing approach is designed to preserve liquidity while leveraging the company's balance sheet strength to support growth.

Revenue Outlook

The board's approval reflects a clearly defined revenue trajectory for the two new projects. The Multi-Purpose Plant is set to be completed by FY28, with the company aiming for INR 500 crore in revenue by FY29 or FY30. Over the longer term, the combined output from the Epoxy Resin & Formulations unit and the MPP is expected to generate peak revenues in the range of INR 1,300 crore to INR 1,500 crore, underscoring the scale of the strategic investment.

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, an 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.