Bodal Chemicals Reports Mixed Q2 Results with Revenue Growth but Lower Profitability

Bodal Chemicals Limited, a leading chemical manufacturer, has reported mixed financial results for the second quarter ended September 30, 2025. The company saw revenue growth but experienced a decline in profitability compared to the same period last year.

Revenue Growth

Bodal Chemicals reported consolidated revenue from operations of 4,804.52 million rupees in Q2 FY2026, up 11.2% from 4,321.23 million rupees in Q2 FY2025. For the half-year ended September 30, 2025, revenue stood at 9,346.55 million rupees, representing a 9.4% increase year-over-year.

Profitability Metrics

Despite the revenue growth, the company's profitability metrics showed mixed results:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY2026 was 429.10 million rupees, compared to 377.30 million rupees in Q2 FY2025.
The EBITDA margin decreased to 8.6% from 8.7% in the same quarter last year.
For H1 FY2026, EBITDA improved to 945.70 million rupees from 746.50 million rupees in H1 FY2025, with the margin expanding to 9.9% from 8.7%.

Net Profit Turnaround

Bodal Chemicals reported a consolidated net profit of 59.93 million rupees in Q2 FY2026, compared to a loss of 2.42 million rupees in the corresponding quarter of the previous year. For H1 FY2026, net profit stood at 155.26 million rupees, a significant improvement from a loss of 14.17 million rupees in H1 FY2025.

Segment Performance

The company's financial results indicate varied performance across its business segments:

Basic Chemicals segment showed strong growth
Dyestuff segment experienced a slight decline
Dye Intermediates segment saw modest growth
Chlor Alkali business reported revenue growth of 9% year-on-year in H1 FY2026

Balance Sheet and Cash Flow

As of September 30, 2025, Bodal Chemicals reported:

Item	Value (million rupees)
Total assets	23,128.51
Total equity	11,219.35
Net cash flow from operating activities (H1 FY2026)	778.82

Management Commentary

The company's management noted that the improvement in volumes across divisions, stable input raw material costs, and ongoing cost-control measures have been helpful in sustaining growth during challenging times. They expect gradual growth and meaningful contributions from new projects, including the Benzene downstream products unit at Saykha, Gujarat.

Outlook

Bodal Chemicals aims to enhance revenue and margins in the near term through improvement in volumes across divisions and stable input costs. The management remains focused on cost-control measures to navigate the challenging business environment.

While the company has shown resilience in revenue growth, the pressure on margins indicates ongoing challenges in the chemical industry. Investors and stakeholders will be watching closely to see how Bodal Chemicals manages these headwinds in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.73%	-3.79%	-3.12%	-16.04%	-21.47%	-9.86%

Bodal Chemicals Limited, a leading integrated manufacturer of dyestuff and dye intermediates, has reported a solid performance for the first quarter. The company's financial results showcase growth in revenue and significant improvement in profitability.

Financial Highlights

Total revenue reached ₹458.00 crore, marking an 8% year-on-year growth
EBITDA surged by 40% to ₹52.00 crore, with an improved margin of 11.3%
Consolidated net profit stood at ₹9.53 crore

Segment Performance

The company's various divisions showed mixed results:

Division	Revenue (₹ Crore)	YoY Change
Dye Intermediates	150.00	-4%
Dyestuff	122.00	-10%
Basic Chemicals	45.00	+15%
Chlor-alkali	84.00	+8%
Benzene Derivatives	13.00	New segment

Operational Insights

Dye Intermediates: The 4% decline in revenue was attributed to lower raw material prices, particularly aniline oil and ethylene.
Dyestuff: The 10% decrease was due to reduced raw material prices affecting finished good prices.
Basic Chemicals: Grew by 15% year-on-year, driven by increased raw material prices, particularly sulfur.
Chlor-alkali: Showed an 8% growth, with normal caustic soda prices and volumes.
Benzene Derivatives: The newly operational unit contributed ₹13.00 crore to revenue but operated at only 20% capacity utilization.

Strategic Developments

The company expects antidumping duty benefits on TCCA (Trichloroisocyanuric Acid) to materialize in Q3 and Q4.
Management maintains a revenue guidance of approximately ₹1,900.00 crore.
Bodal Chemicals targets debt reduction of ₹150.00-175.00 crore through asset sales and scheduled repayments.

Future Outlook

Ankit Patel, Executive Director of Bodal Chemicals, stated, "In today's environment where Indian suppliers are emerging as preferred partners globally, the company has a good opportunity to grow further in the future."

The company aims to improve capacity utilization in its chlor-alkali business to 90-95% in the coming quarters. Additionally, the benzene derivatives segment is expected to ramp up, potentially reaching 70-80% utilization by Q3.

Upcoming Corporate Events

The company has announced its 39th Annual General Meeting, to be held on September 26, through video conferencing. The e-voting period for shareholders will be from September 23 to September 25.

Bodal Chemicals continues to focus on consolidating its current operations and unlocking more value from its existing businesses, particularly in the benzene derivatives and TCCA segments. With a strategic approach to debt reduction and capacity utilization improvement, the company appears well-positioned to navigate the evolving chemical industry landscape.