Sunshield Chemicals Limited announced that its Board of Directors has approved the reappointment of Mr. Cyrus Poonevala as an Independent Director. The decision was taken during a Board meeting held on May 13, 2026, pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015. The reappointment is based on the recommendation of the company's Nomination and Remuneration Committee.

Mr. Poonevala has been reappointed for a second term of five years, effective from January 15, 2027, until January 14, 2032. This appointment is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the company. Mr. Poonevala was initially appointed for a term ending on January 14, 2027.

Mr. Cyrus Poonevala is an experienced Aircraft Engineer with over 30 years of experience in the aviation industry, with a specific focus on maintenance. The company stated that his experience enables him to provide balanced guidance and contribute to the Board in matters relating to operations, risk oversight, and governance. He is not related to any of the existing Directors of the company and is not debarred from holding the office of Director by virtue of any SEBI order or any other authority.

Sunshield chemicals has received a credit rating upgrade from India Ratings and Research (Ind-Ra), which affirmed the company's long-term rating at 'IND BBB+' with a Stable Outlook while upgrading the short-term rating to 'IND A2+' from 'IND A2'. The rating action covers bank facilities worth Rs. 45.00 crores, reduced from the previous Rs. 100.00 crores.

Rating Details and Financial Impact

The upgrade reflects significant improvement in the company's financial flexibility following strategic debt management initiatives. In FY26, Sunshield Chemicals raised INR1,299 million through a rights issue, utilizing the proceeds to fully repay all term debt and unsecured loans from the parent company.

Key Financial Performance Metrics

The company's financial performance shows mixed trends with revenue growth offset by margin pressures. Revenue increased to INR3,657.95 million in FY25 from INR2,833.75 million in FY24, representing significant growth driven by capacity expansion and volume increases.

Operational Strengths and Market Position

Sunshield Chemicals benefits from experienced promoter support through Indus Petrochem Limited's 62.36% holding, bringing over 25 years of sectoral expertise. The company operates a diversified portfolio serving multiple end-use sectors including metal treatment, wire enamels, PVC stabilizers, and various industrial applications across India and international markets.

The company expanded its installed capacity to 25,231MTPA in FY25 from 18,067MTPA in FY24, with sales volumes increasing by 29% year-on-year despite competitive pressures on realizations. In 9MFY26, the company recorded revenues of INR3,312.40 million with EBITDA margin improving to 10.78%.

Risk Factors and Market Challenges

Despite positive developments, the company faces several challenges that impact its operational performance:

• Forex Risk: Exposure to foreign exchange fluctuations from raw material imports and product exports, with no formal hedging policy
• Market Competition: Intense pressure from Chinese suppliers with aggressive pricing strategies
• Demand Volatility: Prolonged weakness in global specialty chemical demand affecting overall market sentiment

Liquidity and Working Capital Management

The company maintains adequate liquidity with month-end average utilization of fund-based and non-fund-based limits at 59% for the 12 months ended January 2026. The net working capital cycle improved to 75 days in FY25 from 83 days in FY24, though it lengthened marginally to 87 days in 9MFY26.

Cash flow from operations strengthened to INR389 million in FY25 from INR342 million in FY24, supported by favorable working capital movements. The company maintains cash and cash equivalents of INR28 million with no upcoming term-debt repayment obligations.