Indo Borax & Chemicals Ltd has granted 16,88,950 stock options to eligible employees under its Employees Stock Option Plan 2026 (ESOP 2026). The options, approved by the Nomination and Remuneration Committee via a circular resolution on June 30, 2026, carry an exercise price of Re. 1 per share. This move aims to incentivize employees by offering them a stake in the company's growth at the face value of the equity shares.

The ESOP 2026 is compliant with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Each option granted is convertible into one fully paid-up equity share with a face value of Re. 1. Consequently, the total number of equity shares covered by these options stands at 16,88,950. The exercise price determined by the committee ensures it is not less than the face value and does not exceed the market price as on the date of grant.

Vesting and Exercise Terms

The options granted under the plan will vest not earlier than one year and not later than five years from the date of grant. Exceptions to the one-year minimum vesting period apply in cases of death or permanent incapacity of the employee. Once vested, the options can be exercised during a period that expires upon the completion of a maximum exercise period of five years from the date of respective vesting, or any shorter period determined by the committee.

Shares arising from the conversion of these options will rank pari-passu with existing equity shares. Following allotment and credit to demat accounts, these shares will be freely transferable and not subject to any lock-in period restrictions. However, they will remain subject to insider trading regulations and the company's Code of Conduct.

Key Details of ESOP 2026

The Nomination and Remuneration Committee retains the discretion to adjust the number of options and the exercise price in the event of corporate actions such as stock splits, dividends, mergers, or changes in control of the company. The intimation regarding this grant has been submitted to the stock exchanges and is available on the company's website.

Indo Borax & Chemicals reported an 18.3% year-on-year increase in consolidated net profit to ₹50.27 crore for FY26, driven by robust operational performance and higher realizations. The company's consolidated operating revenue rose 22.9% to ₹215.45 crore from ₹175.26 crore in the previous year. The board has recommended a final dividend of ₹10 per share and a special dividend of ₹30 per share for the financial year, backed by strong liquidity and a near-zero debt position.

Annual Performance Highlights

For the financial year ended March 31, 2026, Indo Borax & Chemicals achieved a Profit After Tax (PAT) of ₹50.27 crore compared to ₹42.51 crore in FY25. EBITDA for the year stood at ₹44.16 crore, with a healthy EBITDA margin of 20.5%. The company maintained a PAT margin of 21.8% during the year. On a standalone basis, net profit for the year stood at ₹49.73 crore, up from ₹41.88 crore in the corresponding period last year.

Q4 Performance

In the fourth quarter of FY26, the company reported a standalone net profit of ₹14.53 crore, a significant increase from ₹10.24 crore in the same quarter of the previous year. Total income from operations for the quarter increased to ₹63.01 crore from ₹50.12 crore year-on-year. EBITDA for Q4FY26 rose to ₹12.82 crore from ₹10.20 crore in Q4FY25, with margins maintained at 20.4%.

Key Financial Metrics

Strategic Developments

The company noted that its strong performance was supported by improved capacity utilization and steady domestic demand. Management highlighted that Indo Borax is a leading player in Boric Acid with a market share of approximately 50% and is the sole manufacturer of IP grade Boric Acid in the country with valid FDA and BIS licenses. The company is also evaluating downstream expansion opportunities to capture incremental domestic demand, which is estimated to grow at a CAGR of 7%–8% from FY26 to FY30.

Management Commentary

Addressing investors in an earnings call, management stated that the company experienced a transformational phase in FY26 with a change in ownership, where Zenrock Chemicals emerged as the new promoter. A new leadership team took charge in the fourth quarter. The company closed FY26 with 23% growth in operating revenue and 18% growth in net profit. The special dividend of ₹30 per share was funded by the sale of non-core assets. Looking ahead, management expects revenue to reach ₹250 crore in the coming year, driven by debottlenecking, better realizations, and volume growth. The company is also exploring new product lines, including Boron Oxide, and expanding its presence in export markets.