Valiant Organics Limited has issued a clarification to both BSE and NSE regarding the recent significant movement in its stock price, responding to surveillance queries from both exchanges dated March 23, 2026.

Exchange Communication Details

The company received formal communications from both major stock exchanges seeking explanations for unusual price activity. The queries were structured as follows:

Company's Official Response

In its formal response dated March 24, 2026, Valiant Organics Limited provided a comprehensive clarification addressing the stock exchanges' concerns. The company categorically stated that there is no undisclosed or unpublished price-sensitive information that could have influenced the recent price or volume behavior in its securities.

The management emphasized that the observed movement in stock price and trading volume appears to be purely market-driven, attributable to prevailing market conditions rather than any company-specific developments that have not been disclosed to the public.

Regulatory Compliance Commitment

The company reaffirmed its commitment to maintaining transparency and regulatory compliance. Key aspects of this commitment include:

• Timely disclosure of all price-sensitive information to stock exchanges
• Adherence to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Continued vigilance in meeting disclosure requirements as and when required

Communication Authorization

The clarification was signed by Kaustubh Kulkarni, Company Secretary, bearing ICSI membership number A52980. The response was formally submitted to both exchanges' surveillance departments at their respective Mumbai offices, ensuring proper documentation and compliance with exchange requirements.

This clarification demonstrates the company's proactive approach to addressing market concerns and maintaining transparent communication with regulatory authorities and stakeholders.

Valiant Organics Limited shares gained momentum following the company's announcement of significant margin improvements in its Q3FY26 results. The specialty chemicals manufacturer reported a remarkable 500 basis points expansion in gross margin to 43%, while maintaining EBITDA margin at 11.82% for the nine-month period, demonstrating strong operational efficiency amid market challenges.

Share Price Movement and Market Response

The company's shares witnessed positive movement as investors responded favorably to the substantial margin expansion. The 500 basis points improvement in gross margin to 43% highlighted management's successful cost optimization and pricing discipline strategies, reinforcing investor confidence in the company's operational capabilities.

Q3FY26 Financial Performance

The company's third-quarter results reflected resilience despite revenue pressures, with key metrics showing mixed performance across operational parameters.

Despite revenue declining year-on-year, the company maintained margin discipline with EBITDA margin expanding by 155 basis points to 9.79%. The quarter was supported by exceptional income of INR 57 million from insurance claim refunds.

Nine-Month FY26 Performance Shows Strong Recovery

The cumulative nine-month performance demonstrated the company's successful turnaround strategy, with the gross margin expansion of 500 basis points being a key highlight.

The nine-month results showcased substantial operational improvements, with EBITDA increasing 84.4% year-on-year and margins expanding by over 500 basis points. The company achieved a strong turnaround in profitability, moving from a loss of INR 76 million in 9M-FY25 to a profit of INR 175 million.

Chemistry-wise Revenue Performance

The company's diversified chemistry portfolio showed varied performance across different segments during Q3FY26, with operational efficiency improvements visible across all verticals.

Hydrogenation remained the largest revenue contributor at 43% of total revenue, followed by Ammonolysis at 28% and Chlorination at 23%. While all segments experienced revenue decline year-on-year, the significant margin expansion indicated improved operational efficiency across all chemistry verticals.

Operational Excellence and Market Position

The company's operational performance reflected successful implementation of cost optimization strategies and pricing discipline. The gross profit margin expansion of over 500 basis points to 43% for the nine-month period, compared to 38% in 9M-FY25, demonstrated enhanced operational efficiency and strategic focus on value-added products.

Valiant Organics operates six manufacturing units across five locations with a total production capacity of 70,000 TPA. The company continues to serve diversified end-user industries including Dyes & Pigments (52% of revenue), Agro Chemicals (25%), Pharmaceuticals (13%), and Specialty Chemicals (10%), providing stability and growth opportunities across market cycles.