Thirumalai Chemicals Limited has disposed of a 5% stake in Ultramarine & Pigments , reducing its holding to 9.38%. The promoter group sold 14,60,000 equity shares through a block deal on August 31, 2026.

The transaction was disclosed pursuant to Regulation 29(2) read with Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Thirumalai Chemicals, identified as part of the promoter group, held 41,98,837 shares (14.38%) before the sale. The disclosure was submitted to stock exchanges on September 2, 2026.

Transaction Details

The disposal involved only voting rights carried by equity shares. No warrants, convertible securities, or other instruments entitling the seller to receive shares were involved in the transaction. The total diluted share capital of Ultramarine & Pigments remains unchanged at 2,92,00,000 equity shares of ₹2/- each.

Following the sale, Thirumalai Chemicals holds 27,38,837 shares. The filing confirms that none of the remaining shares are encumbered with pledges, liens, or non-disposal undertakings.

What the Numbers Show

The reduction in stake from 14.38% to 9.38% signifies a significant dilution of the promoter group's voting power in the target company. With the holding falling below the 10% threshold often monitored for substantial acquisition triggers, the move alters the control dynamics within Ultramarine & Pigments. The use of a block deal suggests a negotiated off-market transfer rather than open market selling, potentially minimizing immediate price impact.

Ultramarine & Pigments Limited reported a robust 68% year-on-year increase in consolidated net profit for the quarter ended June 30, 2026 (Q1FY26), reaching ₹315.9 crore from ₹201.9 crore in the corresponding period last year. The growth was primarily driven by a 30% expansion in revenue from operations, which rose to ₹2,399.6 crore from ₹1,843.8 crore. This performance underscores strong demand for its chemical products and improved operational efficiency across its manufacturing units.

The Board of Directors, at a meeting held on August 7, 2026, approved the unaudited standalone and consolidated financial results pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee on the same date and are subject to limited review by the statutory auditors, Sundaram & Srinivasan.

Financial Performance Highlights

On a consolidated basis, the company’s profit before tax stood at ₹423.8 crore, up significantly from ₹265.5 crore in Q1FY25. Earnings per share (EPS) increased to ₹10.82 from ₹6.91 in the year-ago quarter. On a standalone basis, net profit after tax rose to ₹279.7 crore from ₹166.3 crore, with EPS climbing to ₹9.58 from ₹5.70.

Segment-Wise Contribution

The Chemicals and Allied Products segment remained the primary revenue driver, contributing ₹2,250.3 crore to the consolidated segment revenue, up from ₹1,718.8 crore in Q1FY25. This segment also delivered the highest segment result of ₹382.7 crore, compared to ₹253.6 crore previously. The IT Enabled Services segment saw revenue grow to ₹149.3 crore from ₹125.0 crore, while the Windmill segment reported stable revenue of ₹137 crore.

What the Numbers Show

The significant outperformance in the Chemicals segment indicates that pricing power or volume growth in core inorganic pigment products is the key catalyst for this quarter's results. Furthermore, the expansion in standalone net profit margin suggests effective cost management, as total expenses grew at a slower pace than revenue. The consistent rise in both standalone and consolidated metrics reflects healthy underlying business fundamentals without reliance on one-time gains, as exceptional items were nil for the quarter.