Excel Industries , a prominent player in the chemical industry, has announced a significant corporate action involving its wholly-owned subsidiaries. The company disclosed that Kamaljyot Investments Limited (KIL) and Excel Bio Resources Limited (EBRL) have sold their entire stakes in Mobitrash Recycle Ventures Private Limited (MRVPL).

Key Details of the Transaction

• Sellers: Kamaljyot Investments Limited and Excel Bio Resources Limited
• Buyer: Mr. Ashwin C. Shroff (Promoter of Excel Industries)
• Stakes Sold: 19.99% each (1,999 shares per subsidiary)
• Sale Price: Rs. 19,990 per subsidiary
• Transaction Date: November 21, 2025

Impact on Excel Industries

As a result of this divestment, Mobitrash Recycle Ventures Private Limited has ceased to be an associate company of Excel Industries Limited. This change in status became effective from November 21, 2025.

Financial Implications

To provide context on the financial impact of this divestment, here's a breakdown of MRVPL's contribution to Excel Industries' financials for the fiscal year ending March 31, 2025:

Related Party Transaction

The company has confirmed that this transaction falls under the category of a related party transaction, as the buyer, Mr. Ashwin C. Shroff, is a promoter of Excel Industries. However, the company has stated that the transaction was conducted at arm's length.

Regulatory Compliance

Excel Industries has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also adhered to the SEBI Master Circular dated July 11, 2023, as modified on July 13, 2023, regarding disclosure requirements.

This strategic move by Excel Industries to divest its indirect stake in Mobitrash Recycle Ventures may be part of the company's efforts to streamline its investment portfolio. Investors and market watchers will likely be keen to observe how this divestment impacts Excel Industries' future financial performance and strategic direction.

Excel Industries reported a decline in revenue for the second quarter, primarily due to subdued demand in the agrochemical segment. However, the company has announced a significant new contract manufacturing agreement, signaling efforts to diversify its revenue streams.

Q2 Financial Highlights

Excel Industries experienced a revenue decline in Q2, with the following key figures:

The company attributed the revenue decline to subdued demand in the agrochemical segment, impacted by an extended monsoon season and low demand for certain key products. Exports contributed 17.70% of the total revenue for the quarter.

H1 Performance

For the first half, Excel Industries reported:

• Net operating revenue: ₹580.00 crores (9% increase year-over-year)
• EBITDA: ₹72.00 crores (down from ₹88.00 crores in H1 of the previous year)
• Profit after tax: ₹52.00 crores (20% decrease year-over-year)

New Contract Manufacturing Agreement

Excel Industries announced a significant development in its contract manufacturing business:

• Signed a binding term sheet with a reputed Indian specialty chemicals company
• Five-year contract for manufacturing and supply of a specialty chemical
• Estimated investment: ₹40.00 crores for setting up a new dedicated production line
• Expected annual revenue: ₹35.00-40.00 crores (excluding raw material costs)
• EBITDA accretive arrangement
• Commissioning expected by June 2026

This agreement marks a strategic step towards strengthening Excel's position in contract manufacturing and reducing dependence on the agrochemical sector.

Business Outlook

• Full-year EBITDA margin guidance maintained at 13-15%
• Q3 expected to remain lean due to typical agrochemical sector trends
• Normalization of demand anticipated in Q4, subject to inventory clearance
• Current capacity utilization stands at 70-75% across all manufacturing sites

Strategic Focus

Excel Industries remains committed to building a resilient and future-ready organization by:

1. Leveraging core strengths in specialty chemicals
2. Focusing on robust process R&D and integrated manufacturing
3. Maintaining long-standing customer relationships
4. Prioritizing environment, health, safety, and sustainability

The company's new R&D center is on track to become operational in Q3, reflecting its ongoing commitment to innovation and product development.

As Excel Industries navigates through the current market challenges, its strategic initiatives in contract manufacturing and R&D investments are expected to drive long-term growth and reduce dependence on the cyclical agrochemical sector.