Chemplast Sanmar Limited reported a challenging third quarter performance for FY26, with consolidated revenue declining significantly amid pricing pressures across its product portfolio. The specialty chemicals manufacturer faced headwinds from weather-related disruptions, import competition, and global market conditions that impacted margins across key business segments.

Financial Performance Overview

The company's consolidated financial results showed substantial pressure during Q3 FY26, with revenue and profitability metrics declining across year-on-year and sequential comparisons.

For the nine-month period ending Q3 FY26, consolidated revenue stood at ₹2,968 crore compared to ₹3,195 crore in the corresponding period of FY25, representing a 7% decline. EBITDA for 9M FY26 was ₹4 crore versus ₹182 crore in 9M FY25, marking a 98% decrease.

Segment-wise Performance Analysis

The company's diversified business segments showed mixed performance during the quarter, with all major divisions facing operational challenges.

PVC Business Segments

The Paste PVC segment maintained relatively stable domestic demand during the quarter. The Anti-Dumping Duty (ADD) investigation on Paste PVC imports from the EU and Japan continued to progress, which is expected to provide relief from import competition.

Suspension PVC business encountered significant difficulties due to weather-related disruptions and competitive pressure from lower-priced imports. The non-implementation of long-awaited ADD measures continued to impact the segment's performance. However, the Chinese government's decision to withdraw the Suspension PVC export tax rebate effective from April 2026 is anticipated to reduce Chinese exporters' competitiveness.

Specialty Chemicals and Value-Added Products

The Custom Manufactured Chemicals Division (CMCD) performance was impacted by the ongoing agrochemical industry slowdown, though the company continued its new product development and capacity expansion initiatives as planned.

In the Value-added Chemicals (VAC) segment, caustic soda prices and margins remained under pressure globally, with domestic overcapacity adding to the challenges. Hydrogen Peroxide volumes were particularly affected during Q3, primarily due to reduced caustic soda output at the Mettur facility.

Management Outlook and Strategic Initiatives

Managing Director Ramkumar Shankar acknowledged the challenging operating environment while emphasizing the company's focus on disciplined execution and cost control. The management highlighted several positive developments, including early signs of revival in Suspension PVC pricing driven by Chinese policy changes.

On the capacity expansion front, the company reported progress on key projects:

The refrigerant gas project includes two new R32 plants (10 ktpa and 2 ktpa) and conversion of existing R22 capacity into a swing plant at Mettur, with commercial sales expected post swing-plant commissioning in Q4 FY26.

Production and Sales Volumes

Consolidated sales volumes for Q3 FY26 reached 1,21,322 metric tons compared to 1,42,730 metric tons in Q3 FY25. The Suspension PVC segment recorded sales of 28,177 metric tons versus 24,931 metric tons in the previous year quarter, while Specialty Chemicals volumes declined to 30,377 metric tons from 39,435 metric tons.

The company expects to begin FY27 on a stronger foundation, with anticipated easing of pricing pressures in key products and new capacity additions nearing completion. Management believes the combination of regulatory developments and structural market improvements will support enhanced market sentiment and sustainable growth prospects.

Chemplast Sanmar Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing challenging operational performance across both standalone and consolidated operations. The board of directors approved these results at their meeting held on February 7, 2026, which commenced at 11:45 AM and concluded at 2:00 PM. Subsequently, the company published these results in newspapers on February 8, 2026, and released an investor presentation highlighting key performance metrics.

Financial Performance Overview

The company's consolidated operations showed significant revenue decline during Q3 FY26, with total revenue dropping to ₹835.14 crores compared to ₹1,057.55 crores in the previous year. The nine-month performance also reflected challenges with consolidated revenue at ₹2,968.24 crores against ₹3,195.19 crores in the corresponding period last year.

Investor Presentation Release

On February 8, 2026, at 4:19 PM IST, the company released its investor presentation titled "Performance Highlights - Q3 & 9M FY'26". The presentation is available on the company's website at www.chemplastsanmar.com and provides comprehensive insights into the quarterly and nine-month performance across various business segments.

Business Segment Performance

The investor presentation highlighted performance across key business divisions including PVC operations, Custom Manufactured Chemicals Division (CMCD), and Value-added Chemicals (VAC). The Suspension PVC business faced difficult operating conditions due to weather-related disruptions and lower import prices, while Paste PVC demand remained relatively stable with ongoing anti-dumping duty proceedings.

Management Commentary and Outlook

Managing Director Ramkumar Shankar acknowledged the challenging quarter while emphasizing the company's focus on disciplined execution and cost control. The presentation noted positive developments including Chinese government's decision to withdraw Suspension PVC export tax rebate effective April 2026, which is expected to improve pricing dynamics.

Regulatory Compliance

The financial results and investor presentation comply with SEBI regulations, with Company Secretary M Raman ensuring proper disclosure to stock exchanges. The results were prepared in accordance with Indian Accounting Standard 34 and reviewed by statutory auditors B S R & Co. LLP.

The company continues to progress on strategic initiatives including capacity expansion projects, with MPB-3 Phase 3 and MPB-4 civil works expected to complete in Q4 FY26 and Q1 FY27 respectively.