Chemcon Speciality Chemicals Limited , a prominent player in the specialty chemicals sector, has released its financial results for the second quarter of fiscal year 2025-26, showcasing a mixed performance amidst strategic expansion moves.

Financial Performance

For the quarter ended September 30, 2025, Chemcon Speciality Chemicals reported a net profit of ₹5.60 crore. The company's performance for the first half of the fiscal year (H1) showed a more robust figure, with a net profit of ₹23.66 crore.

The financial results, as approved by the company's Board of Directors, reveal the following key metrics for Q2 FY2025-26:

Business Expansion

In a significant move to strengthen its market position, Chemcon Speciality Chemicals completed the acquisition of the entire business undertaking of Shivam Petrochem Industries, a related party, in October 2025. The acquisition, structured as a slump sale, was finalized for a consideration of ₹36 crore.

This strategic acquisition aims to expand Chemcon's operations in the specialty chemicals sector. The deal, which was approved by the company's Board on August 5, 2025, and subsequently by shareholders at the 36th Annual General Meeting on September 11, 2025, is expected to enhance the company's production capabilities and market reach.

Financial Position

As of September 30, 2025, Chemcon Speciality Chemicals maintains a strong financial position:

The company's balance sheet reflects a solid equity base and a comfortable liquidity position, providing a stable foundation for future growth and investments.

Operational Highlights

• The company continues to operate in a single reportable segment: manufacturing of Specialty Chemicals.
• Chemcon Speciality Chemicals remains an independent entity with no subsidiaries, associates, or joint ventures as of the reporting date.

The financial results and strategic moves indicate that Chemcon Speciality Chemicals is positioning itself for growth in the competitive specialty chemicals market. The acquisition of Shivam Petrochem Industries represents a significant step in expanding its operational footprint and potentially diversifying its product portfolio.

Investors and stakeholders will be watching closely to see how this acquisition impacts the company's performance in the coming quarters, particularly in terms of revenue growth and market share in the specialty chemicals sector.

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.