Sadhana Nitro Chem Limited has secured a long-term supply contract worth approximately Rs 108 crores with a Japanese multinational customer for the export of a speciality chemical product. The agreement, which spans a period of two years, significantly strengthens the company's revenue visibility and operational outlook. This strategic partnership has pushed the company's confirmed order book to above Rs 200 crores, marking a substantial expansion in its international business footprint.

The contract entails the international supply of a speciality chemical product manufactured by the company. The customer is a Japanese multinational entity, though specific details regarding the name were not disclosed due to commercial sensitivity and non-disclosure obligations. The firm committed aggregate contract value is set at approximately Rs 108 crores, to be executed over the stipulated two-year timeframe.

Contract Details

The disclosure was made to the exchanges pursuant to Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company clarified that the order does not fall within the ambit of related party transactions, and the promoter group has no interest in the entity awarding the contract.

The filing was signed by Nitin Rameshchandra Jani, Company Secretary and Compliance Officer, confirming the details of the transaction. This development underscores the company's capability to secure long-term engagements in the competitive speciality chemicals market.

Sadhana Nitro Chem Limited reported a net loss of ₹873.1 crore for the financial year ended March 31, 2026, compared to a net profit of ₹52.2 crore in the previous year. Revenue from operations for the year stood at ₹405.3 crore, a significant decrease from ₹1,333.7 crore in FY25. The company attributed the loss to temporary reductions in operational throughput and lower export offtake due to the West Asian crisis, which delayed dispatches. The statutory auditors issued an unmodified opinion on the financial results, though they highlighted a material uncertainty regarding the company's ability to continue as a going concern due to the significant losses incurred.

Board Decisions and Appointments

The Board of Directors, at its meeting held on May 26, 2026, approved the audited standalone and consolidated financial results. The Board decided not to recommend any dividend for the financial year 2025-26. Additionally, the Board appointed M/s. Chandrashekhar Iyer & Co as the Internal Auditor and M/s. Vinay Mulay & Co as the Cost Auditor for the financial year 2026-27. Mr. Vimal R. Jain, CFO & President – Operations and Finance, was appointed as a member of the Risk Management Committee.

Financial Performance Overview

The company's financial performance for the quarter and year ended March 31, 2026, reflected the operational challenges faced during the period. For the quarter ended March 31, 2026, the company reported a net loss of ₹33.83 crore on a revenue of ₹6.51 crore. The total expenses for the year increased to ₹1,370.3 crore, driven by higher finance costs and other expenses. The paid-up equity share capital increased significantly during the year following a Rights Issue.

Utilization of Funds and Future Outlook

The Board noted that the proceeds from the Rights Issue amounting to ₹251.95 crore were utilized for the objects of the issue as contained in the Letter of Offer till March 31, 2026. Management stated that working capital funds were infused in the second week of March 2026, leading to a recovery in operations during the latter half of the month. The company expects improvements in subsequent periods as operational stability returns and market conditions become more predictable, despite the volatile situation arising from the West Asian crisis.