Chemcon Speciality Chemicals Limited has successfully executed a significant corporate action, acquiring the entire business undertaking of Shivam Petrochem Industries through a slump sale agreement. This strategic move, valued at INR 36 crore, marks a notable expansion for Chemcon Speciality Chemicals in the specialty chemicals sector.

Key Details of the Acquisition

Corporate Governance and Approval Process

The acquisition underwent a thorough approval process, ensuring compliance with regulatory requirements and shareholder interests:

1. Board Approval: The Board of Directors of Chemcon Speciality Chemicals Limited approved the proposal on August 5, 2025.

2. Shareholder Approval: The material related party transaction received shareholder approval at the 36th Annual General Meeting held on September 11, 2025.

3. Regulatory Disclosure: In accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Chemcon Speciality Chemicals has duly informed the stock exchanges about this material development.

Transaction Details

• Nature of Transaction: The acquisition involves the sale of Shivam Petrochem Industries' business on a going concern basis through a slump sale.
• Related Party Aspect: Shivam Petrochem Industries is a partnership firm that forms part of Chemcon Speciality Chemicals' Promoter Group, making this a related party transaction.

This acquisition aligns with Chemcon Speciality Chemicals' growth strategy in the specialty chemicals industry. The company's decision to acquire Shivam Petrochem Industries' entire business undertaking suggests a move to expand its operational capabilities and market presence.

Investors and market observers may monitor the integration process and the potential synergies arising from this acquisition in the coming months. The impact on Chemcon Speciality Chemicals' financial performance and market position will be areas of interest for stakeholders in the specialty chemicals sector.

Chemcon Speciality Chemicals , a leading manufacturer of speciality chemicals, has reported a robust performance for the first quarter of fiscal year 2026 (Q1 FY26), with significant growth in revenue and profitability.

Financial Highlights

• Revenue from operations increased by 18% year-on-year to ₹54.00 crore, up from ₹45.50 crore in Q1 FY25.
• Profit After Tax (PAT) grew by 19% to ₹6.40 crore, compared to ₹5.40 crore in the same quarter last year.
• EBITDA rose by 8% to ₹7.70 crore.
• PAT margin remained stable at 11.90%, compared to 11.80% in Q1 FY25.

Operational Performance

• Sales volume increased to 2,416 MT from 2,097 MT in Q1 FY25.
• The Organic Chemicals segment, including HMDS, CMIC, and Bromobenzene, showed steady demand recovery.
• The Inorganic Chemicals segment faced challenges due to reduced oil drilling activities.

Segment-wise Performance

Geographic Distribution

Future Outlook

Chemcon Speciality Chemicals is constructing P-10 and P-11 plants to manufacture new products, with completion expected in Q3 FY26. This expansion is likely to diversify the company's product portfolio and enhance its market presence.

Management Commentary

Mr. Kamal Aggarwal, Chairman & Managing Director of Chemcon Speciality Chemicals, commented on the results: "For Q1 FY26, we recorded a revenue of ₹54 Cr, an 18% growth on a YoY basis. This performance was achieved amidst ongoing geopolitical crises, volatile crude oil prices, and ambiguity surrounding US tariffs on the world. Our Organic Chemicals segment witnessed a steady recovery in demand, resulting in noteworthy performance. However, due to persistent supply from China, pricing of our key products was largely moderated."

He further added, "Construction of the P-10 and P-11 plant is on track and will manufacture a completely new range of products. With continued customer engagement, our product pipeline continues to remain strong, and we remain confident in achieving sustained growth in the coming quarters."

Challenges and Opportunities

While the company has shown strong growth, it faces challenges such as:

1. Moderated pricing due to supply from China in the Organic Chemicals segment.
2. Reduced oil drilling activities affecting the Inorganic Chemicals segment.

However, Chemcon Speciality Chemicals remains optimistic about future growth, citing:

1. Steady recovery in demand for Organic Chemicals.
2. Expansion of production capacity with new plants.
3. A strong product pipeline and continued customer engagement.

As Chemcon Speciality Chemicals navigates through global economic uncertainties, its focus on expanding its product range and maintaining strong customer relationships positions it well for future growth in the speciality chemicals sector.