J.G. Chemicals Limited has submitted the transcript of its earnings conference call held on May 15, 2026, to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was conducted to discuss the audited financial results for the quarter and year ended March 31, 2026. The company reported its highest ever annual revenue, EBITDA, and Profit After Tax (PAT) for the financial year.

Financial Performance Highlights

For the full year FY26, the company achieved a revenue of INR972.9 crores, an EBITDA of INR97.9 crores, and a PAT of INR68.6 crores. In the fourth quarter, revenue stood at INR286.2 crores, marking a 27.6% increase year-on-year, with an EBITDA of INR26.8 crores and a PAT of INR18.9 crores. The management attributed the strong performance to double-digit volume growth across key segments and robust demand from the tire and rubber industries.

Operational and Strategic Developments

The company's current capacity utilization is in the late 70s, which it expects to increase to the 86% to 87% range. Management noted that the greenfield project at Dahej, Gujarat, is progressing with civil construction in advanced stages and machinery installation having commenced. Phase 1 of the zinc oxide production is on track for commissioning. Once fully operational, the Dahej facility is expected to contribute significantly to revenue, with potential sales of around INR900 crores at full capacity.

Additionally, the company has commissioned Phase 1 of a solar power generation project at its Naidupeta facility to enhance its sustainability profile and reduce energy costs. The management also provided updates on its recycled rubber project, noting positive feedback from customers during pilot trials and active work on a commercial-scale project.

Industry Outlook and Guidance

The management expressed optimism regarding the demand environment, citing strong momentum in the tire industry driven by GST-led reforms and positive customer sentiment. They highlighted that the Indian automobile industry closed FY26 with exceptional performance, leading to healthy utilization levels for tire manufacturers. The company remains confident in its growth trajectory, supported by deep customer relationships, continuous product innovation, and its sustainability-led approach.

J.G. Chemicals has announced its audited financial results for the quarter and year ended March 31, 2026, approved at the Board of Directors meeting held on May 14, 2026. The company reported a strong performance in Q4 FY26 with consolidated revenue from operations growing 27.6% year-on-year to INR 2,861.69 Mn. Consolidated net profit for the quarter increased by 18.9% to INR 189.00 Mn, compared to INR 159.06 Mn in the same period last year. Q4 consolidated EBITDA stood at INR 214 Mn versus INR 196 Mn in the year-ago period, while the EBITDA margin contracted to 7.48% from 8.74% year-on-year. The board recommended a final dividend of 11% at ₹1.10 per equity share of ₹10 each for FY26, subject to shareholder approval at the ensuing 25th Annual General Meeting.

Consolidated Financial Performance

For the full fiscal year FY26, the company achieved its highest-ever annual revenue, EBITDA, and PAT on a consolidated basis. Consolidated revenue from operations stood at INR 9,729.30 Mn, a 14.7% increase from INR 8,479.44 Mn in the previous year. Consolidated profit after tax (PAT) for FY26 rose by 2.8% to INR 686.49 Mn from INR 667.59 Mn. The consolidated basic and diluted earnings per share for FY26 stood at ₹16.81, compared to ₹16.34 in the prior year. Net profit attributable to owners of the parent for FY26 was INR 658.78 Mn, while non-controlling interest accounted for INR 27.71 Mn.

*Not annualised

Operational Highlights & Future Outlook

During the earnings conference call, management highlighted that the company is currently operating at a capacity utilization rate in the late 70s for zinc oxide, which can be increased to 86% to 87%. The zinc sulphate business is running at approximately 60% capacity. The greenfield project at Dahej, Gujarat, is advancing with civil construction in advanced stages and machinery installation having commenced. Phase 1 commissioning is on track. Once fully operational, the facility will target the ceramic industry in Morbi and strengthen proximity to tire customers in Western India. Management expects the Gujarat plant to achieve 35% to 40% utilization in H2 FY27 and 65% to 70% in FY28.

The company also provided updates on its sustainability initiatives, including the commissioning of Phase 1 of a solar power generation project at Naidupeta in FY26. Regarding the recycled rubber project, management confirmed that pilot trials have received positive customer feedback, and the company is actively working on a detailed commercial scale project.

Consolidated Balance Sheet Highlights

On a consolidated basis, total assets stood at INR 5,692.50 Mn as at March 31, 2026, compared to INR 4,979.30 Mn in the prior year. Total equity attributable to equity holders of the company was INR 5,284.18 Mn, with non-controlling interest at INR 126.36 Mn, bringing total equity to INR 5,410.55 Mn. Property, Plant and Equipment on a consolidated basis increased significantly to INR 672.23 Mn from INR 389.06 Mn, reflecting ongoing capital expenditure. Consolidated cash and cash equivalents at the end of the year stood at INR 162.17 Mn, compared to INR 313.77 Mn at the beginning of the year.

Standalone Financial Performance

On a standalone basis, JG Chemicals reported revenue from operations of INR 879.21 Mn for Q4 FY26, compared to INR 755.04 Mn in Q4 FY25. Standalone net profit after tax for the quarter stood at INR 71.86 Mn, up from INR 63.60 Mn in the year-ago period. For the full year FY26, standalone revenue from operations was INR 2,889.48 Mn versus INR 2,718.20 Mn, while standalone PAT rose to INR 214.50 Mn from INR 200.19 Mn. Standalone basic and diluted EPS for FY26 stood at ₹5.47, compared to ₹5.11 in FY25. Total standalone assets were INR 3,457.39 Mn as at March 31, 2026, versus INR 3,218.15 Mn in the prior year.

IPO Proceeds Utilisation

The company received ₹1,650 million as proceeds from the fresh issue of equity shares. As at March 31, 2026, ₹1,161.92 million had been utilised, with ₹331.32 million remaining un-utilised and invested in term deposits with a scheduled bank. The board approved a variation in the timeline for utilisation of IPO proceeds towards the R&D Centre, with ₹42.62 million still unspent as at March 31, 2026, to be deployed in FY27 due to delays in construction works and equipment procurement. The objects of the issue remain unchanged, and the company has already utilised ₹131.466 crores in accordance with the report of ICRA Limited, the Monitoring Agency.

Corporate Governance & Auditor Appointments

At the board meeting, the company approved the re-appointment of M/s Debabrota Banerjee & Associates as Cost Auditor, SS Kothari Mehta & Co. LLP as Internal Auditor, and M/s. S Jaykishan, Chartered Accountants, as Tax Auditor for FY 2026-2027, all effective from April 01, 2026. The statutory auditors issued an unmodified audit opinion on both standalone and consolidated financial statements for the quarter and year ended March 31, 2026. The company confirmed it does not qualify as a Large Corporate under the applicable SEBI circular, with outstanding borrowings of ₹6.15 crore as on March 31, 2026, a long-term credit rating of CRISIL A/Stable, and a short-term rating of CRISIL A1.