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.

Segment Utilization and Realizations

During the earnings call, management provided granular details on segment performance:

• Capacity Utilization: Caustic soda operated at ~75%, ECH at 70-75%, CPVC at 50-55%, Chloromethanes at 100%, and Hydrogen Peroxide at 85-90%.
• Realizations: Caustic soda (ECU) realizations were ₹35,000–₹36,000 in Q1FY27, down from ₹30,000 in Q4FY26. Current ECU realizations have cooled to ₹31,000–₹32,000. ECH realizations are currently around ₹180–₹185 per kg, having stabilized after wartime peaks.
• CPVC Dynamics: PVC prices rose to ₹84–₹85/kg due to Minimum Import Price (MIP) regulations on carbide-based PVC. However, Epigral uses ethylene-based PVC, which was already priced higher, limiting direct impact. Management expects gradual price pass-through benefits as customers recognize the quality difference between ethylene-based CPVC and carbide-based alternatives.

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.

Epigral Limited company name has scheduled a one-on-one meeting with VVD Asset Managers for August 3, 2026, in Ahmedabad. The engagement is designed to facilitate direct dialogue between the company’s management and institutional investors regarding business performance and strategy. This interaction supports transparency and keeps stakeholders informed about the company's operational trajectory without disclosing any unpublished price-sensitive information.

The meeting was intimated to the National Stock Exchange of India Limited and BSE Limited on July 30, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Gaurang Trivedi, Company Secretary and Compliance Officer of Epigral Limited, signed the disclosure. The schedule remains subject to change due to exigencies on the part of either the institutional investors or the company.

Meeting Details

Participants are advised that the latest Earnings Presentation and Corporate Presentation, which may be discussed during the session, are already available on the company’s website at www.epigral.com . Epigral Limited explicitly stated that no unpublished price-sensitive information will be shared or discussed during the meeting. This ensures compliance with regulatory standards while allowing investors to review publicly available data.

Investor Relations Context

Such one-on-one meetings are a standard component of corporate governance and investor relations protocols for listed entities in India. They allow asset managers like VVD Asset Managers to gain deeper insights into the company’s strategic direction, operational metrics, and market positioning beyond what is captured in periodic financial filings. For shareholders, these interactions signal active engagement with institutional capital providers, which can influence long-term investment decisions and market confidence in the firm’s management team.