Primo Chemicals Limited has released its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the financial statements at its meeting held on May 5, 2026. The results have been prepared in accordance with the Indian Accounting Standards (Ind AS), and the company operates in a single business segment — Chemicals. The audit was conducted by M/s S. Tandon & Associates LLP, which issued an unmodified opinion on both the standalone and consolidated financial results.

Consolidated Financial Performance

On a consolidated basis, Primo Chemicals reported a net profit of Rs. 1537.08 lakh for FY26, a significant increase from Rs. 355.98 lakh in FY25. This includes the share of profit from its associate, M/s Flow Tech Chemicals (P) Limited, which amounted to Rs. 480.79 lakh for the year, compared to Rs. 120.77 lakh in the previous year. The company holds a 49% equity stake in this associate. Revenue from operations stood at Rs. 56169.23 lakh, up from Rs. 55555.81 lakh in FY25, while total revenue including other income was Rs. 58148.59 lakh. Profit before tax was Rs. 1682.14 lakh, and the basic and diluted earnings per equity share (EPS) for FY26 were Rs. 0.63, compared to Rs. 0.15 in FY25.

The company reported an exceptional item related to the statutory impact of the New Labour Codes, amounting to a provision of Rs. 19.55 lakh for the year. On November 21, 2025, the Government of India notified four Labour Codes, and the company assessed potential implications on employee benefit obligations accordingly.

Financial Highlights (Consolidated)

Standalone Financial Results

On a standalone basis, Primo Chemicals reported a profit after tax (PAT) of Rs. 1056.29 lakh for FY26, compared to Rs. 235.21 lakh in FY25. Revenue from operations on a standalone basis was Rs. 56169.23 lakh, matching the consolidated figures. Total expenses for the year stood at Rs. 56446.90 lakh. The standalone basic and diluted EPS for FY26 was Rs. 0.44, up from Rs. 0.10 in the prior year. The paid-up equity share capital remained constant at Rs. 4846.86 lakh, with a face value of Rs. 2.00 per share.

Standalone Financial Highlights

Assets and Liabilities

On a consolidated basis, total assets stood at Rs. 69248.36 lakh as of March 31, 2026, compared to Rs. 74054.43 lakh in the previous year. Non-current assets were Rs. 58444.94 lakh, while current assets totalled Rs. 10803.42 lakh. Equity share capital remained unchanged at Rs. 4846.86 lakh, with other equity at Rs. 35769.67 lakh. Non-current liabilities decreased to Rs. 9268.38 lakh from Rs. 11193.06 lakh, and current liabilities reduced to Rs. 19363.45 lakh from Rs. 23789.97 lakh. On a standalone basis, total assets were Rs. 68003.19 lakh, down from Rs. 73290.05 lakh in the prior year.

Consolidated Assets & Liabilities Summary

Cash Flow Statement

The net cash generated from operating activities for FY26 was Rs. 6468.33 lakh, compared to Rs. 6443.35 lakh in the previous year. Cash used in investing activities amounted to Rs. 1781.59 lakh, primarily on account of the purchase of fixed assets worth Rs. 2601.58 lakh. Financing activities resulted in a net outflow of Rs. 4601.55 lakh, driven by repayment of term loans to banks amounting to Rs. 7001.27 lakh. Consequently, the company reported a net increase in cash and cash equivalents of Rs. 85.19 lakh, bringing the closing balance to Rs. 101.95 lakh from Rs. 16.76 lakh at the beginning of the year.

Cash Flow Summary (Consolidated)

Primo Chemicals Limited's Board of Directors, convening on May 5, 2026, approved a series of significant corporate actions, including the acquisition of the remaining 51% stake in Flow Tech Chemicals Private Limited, the appointment of two Non-Executive Independent Directors, and the acceptance of a senior management resignation. These decisions were disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Acquisition of 51% Stake in Flow Tech Chemicals

Primo Chemicals has approved the acquisition of the balance 51% stake in the paid-up share capital of Flow Tech Chemicals Private Limited, a Promoter Group Company. Primo Chemicals had previously completed the acquisition of 49% holding in Flow Tech as per a Board decision dated May 21, 2021. The remaining 51% stake is targeted to be acquired by March 31, 2027, through cash consideration. The acquisition price will be determined by way of a fresh valuation of equity shares of Flow Tech at the relevant time of exercising the option. No governmental or regulatory approvals are required for this transaction.

Flow Tech Chemicals Private Limited (CIN: U25202PB1996PTC067073) was originally incorporated as Advance Rexine Private Limited on May 16, 1996. The company's name was subsequently changed to Flow Well Plast-Chem Private Limited in September 1998, and later to Flow Tech Chemicals Private Limited in June 2012. Its registered office is currently located at 1A 1B SIEL Industrial Estate, Khadola, Rajpura, Patiala, Punjab, India – 140401. The existing paid-up capital of Flow Tech is Rs. 76,26,080, comprising 7,62,608 equity shares of face value Rs. 10 each. Flow Tech is engaged primarily in the manufacture of Chlorinated Paraffin and Hydrochloric Acid, operating within the same chemical industry as Primo Chemicals.

The proposed transaction qualifies as a related party transaction. Flow Tech was also allocated a land admeasuring 3 acres by Primo Chemicals on lease to set up a Chlorinated Paraffin Plant within Primo Chemicals' plant complex. The said land was granted on lease commencing from June 16, 2012 for a period of thirty years at an annual rent of Rs. 50,000, renewable for a further period of 30 years on mutually agreed terms. Flow Tech also undertakes transactions with Primo Chemicals for the purchase of chlorine in the ordinary course of business on an arms-length basis.

The following table presents Flow Tech Chemicals' financial performance over the last three years (Rs. in lakhs):

The key strategic objectives cited for this acquisition include:

• Better control over supply chain management and advance information regarding future utilisation of chlorine
• Efficient utilisation of capital through reduced uncertainty in disposal of chlorine
• Expansion of business operations by increasing the product range manufactured by Primo Chemicals
• Risk mitigation through a broader product portfolio during challenging market phases
• Addition of new products to strengthen Primo Chemicals' market position and expand its footprint

Appointment of Two Independent Directors

The Board approved the appointment of two Additional Directors (Non-Executive Independent) with effect from May 5, 2026, each for a term of five consecutive years, subject to shareholder approval. Both appointments were made on the recommendation of the Nomination and Remuneration Committee. Neither director is inter-se related to any existing director of the company, and neither has been debarred from holding the office of Director by virtue of any SEBI order or any other authority.

Mr. Dibakar Sarkar is a public sector professional with over 35 years of experience in government service, possessing deep expertise in public infrastructure development and asset management, along with 13 years of experience as Secretary of a statutory development authority established by an Act of Parliament. Mr. Sobhag Mal Jain brings over 37 years of professional experience in finance, risk management, taxation, and corporate governance, primarily with the Life Insurance Corporation of India (LIC) and its associated entities. His experience includes senior leadership roles such as Executive Director (Finance & Accounts & Taxation), Chief Risk Officer, and Director & CEO of LICHFL Care Homes Ltd., along with engagements as Independent Director on the boards of listed entities.

Senior Management Resignation

Mr. Munish Aggarwal tendered his resignation from the position of Senior Vice President (Operations) vide his resignation letter dated April 15, 2026, citing personal reasons. His cessation is effective from May 10, 2026. During the transition period, Mr. Aggarwal indicated he would ensure a smooth and complete handover of his responsibilities.