Privi Speciality Chemicals Limited delivered a strong financial performance for the year ended March 31, 2026, with standalone net profit nearly doubling year-on-year and consolidated revenue from operations crossing Rs. 2,56,000 lakhs. The Board of Directors, at its meeting held on May 11, 2026, approved the audited standalone and consolidated financial results under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and recommended a final dividend for the financial year 2025-26. The statutory auditors, M/s. BSR & Co. LLP, have issued an unmodified audit opinion on both the standalone and consolidated financial results for the year ended March 31, 2026. An earnings conference call was held on May 12, 2026, and the audio recording of the analyst/investor meet is now available at the company's official website. The company also released its Investor Presentation on Financial & Operational Review for the quarter and year ended March 31, 2026.

Chairman's Message

Mr. Mahesh Babani, Chairman & Managing Director, highlighted the company's transformation into a more resilient and diversified organisation. "FY26 reflects strong execution across our business, with total income of ₹2,583 crore, up 22% year-on-year, driven by robust volume growth, improving product mix, and consistent operational performance," he stated. During the year, the company undertook debottlenecking initiatives to support future growth and enhance capacity utilisation. Operating cash flow for the year stood at ₹550 crore, and after investing Rs. 320 crore on CAPEX, total debt reduced by ₹113 crore. Mr. Babani reaffirmed the company's focus on disciplined execution and delivering on its 5k:1k vision over the medium term.

Consolidated Financial Performance at a Glance

On a consolidated basis, the audited results and investor presentation highlighted robust year-on-year improvement across all key metrics for both Q4 FY26 and the full year FY26:

Detailed Consolidated Profit & Loss

The consolidated profit and loss account for FY26 showed revenue from operations of Rs. 2,563.69 crore against Rs. 2,101.19 crore in FY25. Other income stood at Rs. 19.24 crore versus Rs. 20.65 crore. Key cost items included raw materials at Rs. 1,317.10 crore, power and fuel at Rs. 173.69 crore, employee expenses at Rs. 114.71 crore, and other expenses at Rs. 311.97 crore. EBIT for FY26 was Rs. 521.66 crore compared to Rs. 342.41 crore in FY25, after depreciation of Rs. 143.80 crore. Finance costs declined to Rs. 81.95 crore from Rs. 87.88 crore. Profit before tax rose to Rs. 439.70 crore from Rs. 254.52 crore, while total profit after tax was Rs. 316.72 crore against Rs. 184.75 crore. EPS for FY26 stood at Rs. 83.85 versus Rs. 47.87 in FY25.

Standalone Financial Performance

On a standalone basis, Privi Speciality Chemicals reported significant growth across key financial metrics for the year ended March 31, 2026. Revenue from operations rose to Rs. 2,45,553.47 lakhs from Rs. 2,03,834.26 lakhs in the previous year. Profit before tax surged to Rs. 47,898.62 lakhs from Rs. 25,386.91 lakhs, while net profit for the year nearly doubled to Rs. 35,744.19 lakhs from Rs. 18,930.25 lakhs. Basic and diluted EPS for the full year stood at Rs. 91.50, compared to Rs. 48.46 in the previous year.

For the quarter ended March 31, 2026, standalone revenue from operations was Rs. 66,034.73 lakhs, compared to Rs. 58,072.85 lakhs in the corresponding quarter of the previous year. Net profit for the quarter stood at Rs. 10,271.84 lakhs, against Rs. 6,612.29 lakhs in the same quarter last year. The quarter's basic and diluted EPS (not annualised) was Rs. 26.30.

Balance Sheet and Cash Flow Highlights

As at March 31, 2026, standalone total assets stood at Rs. 2,88,309.87 lakhs, compared to Rs. 2,47,343.61 lakhs as at March 31, 2025. Total standalone equity increased to Rs. 1,43,764.15 lakhs from Rs. 1,10,119.27 lakhs. On a consolidated basis, total assets were Rs. 3,16,982.01 lakhs as at March 31, 2026, against Rs. 2,79,050.62 lakhs in the prior year, with total equity at Rs. 1,44,060.91 lakhs versus Rs. 1,11,792.13 lakhs. The consolidated balance sheet reflected growth in inventories to Rs. 82,607.11 lakhs, trade receivables to Rs. 52,600.58 lakhs, and property, plant and equipment at Rs. 1,11,168.34 lakhs. Capital work-in-progress increased significantly to Rs. 29,764.82 lakhs from Rs. 12,747.22 lakhs.

The consolidated cash flow statement showed net cash from operating activities of Rs. 55,008.69 lakhs for FY26, compared to Rs. 28,111.04 lakhs in FY25, reflecting strong operational profitability. Net cash used in investing activities was Rs. -35,808.18 lakhs, while net cash used in financing activities was Rs. -19,767.01 lakhs. Cash and cash equivalents at the end of the period stood at Rs. 4,409.45 lakhs. Net debt stood at Rs. 886.77 crore with a net debt-to-EBITDA ratio of 1.33x, improving from 2.25x in FY25. Net working capital days improved to 117 days from 136 days in FY25. The company operates within a single segment — Aroma Chemical — as per Ind AS 108.

Multi-Year Performance Trend

The investor presentation highlighted a consistent upward trajectory in key financial metrics over the past four fiscal years on a consolidated basis:

PRIGIV — Strategic Joint Venture with Givaudan

PRIGIV, the joint venture between Privi Speciality Chemicals (51%) and Givaudan SA (49%), achieved a significant operational milestone by posting a positive PAT in Q4 FY26. The JV manufactures more than 40 specialty products exclusively for Givaudan. Key developments include a Rs. 50 crore equity infusion by both Privi and Givaudan to support capex for future growth, and approximately Rs. 180 crore in non-interest-bearing trade advances from Givaudan to help reduce debt and lower interest costs. The company is also evaluating additional CAPEX to manufacture high-value specialty molecules using in-house technology, with potential revenue of approximately Rs. 100+ crore.

Proposed Scheme of Amalgamation

Privi Speciality Chemicals has proposed a scheme of amalgamation involving Privi Fine Sciences Private Limited (PFSPL) and Privi Biotechnologies Private Limited (PBPL) merging into Privi Speciality Chemicals Limited (PSCL). PFSPL includes products such as Privial, Anethole, and Cyclamen Aldehyde used in fine and functional flavours and fragrances, while PBPL, a 100% subsidiary, specialises in biotechnology-driven flavour and fragrance development. The merger is expected to unlock faster growth through combined expertise in aroma chemicals, expand sustainable chemistry offerings, and strengthen core operations.

Dividend, AGM, and Corporate Developments

The Board has recommended a final dividend of Rs. 10/- (100%) per equity share of face value Rs. 10/- each for the financial year 2025-26, aggregating to Rs. 3,906.27 lakhs, subject to shareholder approval at the 41st Annual General Meeting. Key corporate calendar dates are as follows:

The Board also approved the re-appointment of Mr. Bhaktavatsala Rao Doppalapudi (DIN: 00356218) as Executive Director (Whole-time Director) for a period of 3 years with effect from August 13, 2026 to August 12, 2029, subject to shareholder approval. Mr. Doppalapudi has been associated with the Privi group since 1982 and oversees Operations, Research & Development, Personnel and raw material sourcing. M/s. Aneja Associates, Chartered Accountants, were re-appointed as Internal Auditor, and M/s. Kishore Bhatia & Associates (Firm Registration Number 00294 & ICMA M. No. 8241) were re-appointed as Cost Auditors, both for the Financial Year 2026-27.

Growth Strategy and Outlook

Privi Speciality Chemicals is targeting Rs. 5,000 crore in revenue and Rs. 1,000 crore+ in EBITDA by FY29-30, representing more than 2x growth from current levels. EBITDA margins are expected to sustain north of 20%, driven by continued operational efficiency and an enhanced product mix. New product initiatives include Maltol and Ethyl Maltol, Renewable Cyclopentanone, Furfural, and 10+ other high-end specialty products, in addition to 40+ products under PRIGIV. The company's flagship product capacity augmentation project is nearing completion, and it is strengthening its information technology systems with Artificial Intelligence tools. Privi also achieved the Platinum rating (Top 1%) from EcoVadis in May 2025, the highest possible certification from the world's most trusted sustainability rating agency.

Privi Speciality Chemicals Limited has received observation letters with 'no objection' from both BSE Limited and the National Stock Exchange of India Limited, marking a significant regulatory milestone in its proposed scheme of amalgamation. The BSE observation letter is dated May 06, 2026, while the NSE observation letter was dated May 05, 2026. Both disclosures were made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 06, 2026. The observation letters are also being hosted on the company's website at https://privi.com/investor-relations/scheme-of-amalgamation-2025 .

Scheme of Amalgamation: Key Details

The proposed scheme involves the amalgamation of two transferor companies into Privi Speciality Chemicals Limited, which serves as the Transferee Company. The structure of the scheme is outlined below:

Background and Regulatory Progress

The Board of Directors of Privi Speciality Chemicals Limited had approved the proposed scheme of amalgamation between PSCL, PFSPL, and PBPL, along with their respective shareholders and creditors, as communicated through an earlier intimation dated December 19, 2025. The approval was granted subject to the receipt of requisite regulatory and statutory approvals. With observation letters now received from both NSE and BSE, the company has cleared two significant regulatory hurdles in the amalgamation process.

Pending Approvals

While both stock exchanges have issued their 'no objection' observation letters, the scheme remains subject to all other applicable regulatory and statutory approvals as required.

The intimation was signed by Ashwini Saumil Shah, Company Secretary and Compliance Officer of Privi Speciality Chemicals Limited, on May 06, 2026.