Chemplast Sanmar , a leading chemical manufacturer, has reported its financial results for the first quarter of fiscal year 2026, showcasing resilience in the face of challenging market conditions.

Financial Highlights

The company achieved a revenue of INR 1,100.00 crores for Q1 FY26, compared to INR 1,145.00 crores in the same quarter of the previous year, representing a 4% year-on-year decline. EBITDA stood at INR 17.00 crores, while the company reported a net loss of INR 64.00 crores for the quarter.

Segment Performance

Specialty Chemicals

The Specialty Chemicals segment, including Custom Manufacturing and Paste PVC, reported a revenue of INR 355.00 crores, remaining flat year-on-year. The Custom Manufacturing division's dispatches were in line with plans, while the agro-chemical sector showed signs of recovery from recent slowdowns.

Suspension PVC

Suspension PVC posted revenues of INR 646.00 crores, implying a 12% growth on a sequential basis. The company sold 92,849 tons during the quarter, representing a 17% quarter-on-quarter growth, driven by the destocking of excess inventory.

Value-Added Chemicals

Revenue from value-added chemicals, including Caustic Soda, Chloromethanes, and Hydrogen Peroxide, saw a small 3% drop year-on-year at INR 140.00 crores. Lower Caustic Soda production at Mettur due to temporary plant operational issues impacted the segment's performance.

Market Challenges and Opportunities

Ramkumar Shankar, Managing Director of Chemplast Sanmar, commented on the market conditions: "The industry continued to face pricing pressures due to persistent dumping of Paste PVC primarily from Europe and Suspension PVC from China and other countries."

The company is optimistic about potential anti-dumping duties (ADD) on Paste PVC imports from the European Union and Japan, with final findings expected by the end of the calendar year. For Suspension PVC, the final anti-dumping duty findings are anticipated soon following the issuance of a disclosure statement.

Operational Updates

• The new Paste PVC plant in Cuddalore has successfully ramped up to full operating capacity.
• Construction activities for MPB 3 Phase 3 and civil works for MPB 4 are progressing as planned, with completion expected by Q3 of the current financial year.
• Environmental clearance has been received for the R32 refrigerant gas project, with final decisions on sizing and siting to be taken shortly.

Outlook

Despite current challenges, Chemplast Sanmar remains optimistic about the future. The company is focusing on broadening its customer base in the Custom Manufactured Chemicals business and is confident in its potential to generate long-term value.

Mr. Shankar concluded, "We believe that we are nearing the end of a long winter in PVC. While the last few quarters have indeed been very tough, we have used this period effectively to build capacity in our Specialty businesses, which would act as a springboard for future growth."

As Chemplast Sanmar navigates through these challenging times, the company remains committed to its growth strategy and is poised to capitalize on market improvements in the coming quarters.

Chemplast Sanmar Limited , a leading specialty chemicals company, has released its financial results for the first quarter, revealing the impact of challenging market conditions on its performance.

Financial Highlights

For Q1, Chemplast Sanmar reported:

• Consolidated revenue from operations of Rs. 1,099.90 crore, down 4% year-on-year
• EBITDA of Rs. 17.00 crore, a significant decrease from Rs. 124.00 crore in the same quarter last year
• Net loss of Rs. 64.25 crore, compared to a profit of Rs. 23.89 crore in the same quarter last year

Segment Performance

The company's performance was affected across both its specialty and commodity segments:

• Specialties segment revenue: Rs. 495.28 crore
• Commodity segment revenue: Rs. 646.08 crore

Both segments reported losses, with the specialties segment recording a loss of Rs. 38.20 crore and the commodity segment a loss of Rs. 47.99 crore.

Market Challenges and Outlook

Mr. Ramkumar Shankar, Managing Director of Chemplast Sanmar, commented on the results, highlighting the global uncertainties and sluggish demand across major economies. He noted that the industry faced continued pricing pressure due to persistent dumping of Paste PVC and Suspension PVC.

Key points from the management's outlook include:

1. Anti-dumping investigation initiated for Paste PVC imports from EU and Japan, with final duty imposition expected by Q4.
2. Final findings by DGTR on Anti-dumping Duty for Suspension PVC expected shortly.
3. Medium to long-term outlook for both Paste PVC and Suspension PVC remains strong.
4. Steady demand for Paste PVC with encouraging signs from the automobile sector.
5. Pipe procurement activity for Suspension PVC likely to pick up in coming quarters due to infrastructure project backlogs.

Custom Manufacturing Chemicals Division (CMCD)

The CMCD segment showed resilience:

• Q1 dispatches were on track
• Product pipeline remains healthy
• Construction activities for new multi-purpose blocks progressing as planned

Value-Added Chemicals

• Caustic Soda prices remained firm during the quarter
• Chloromethanes and Hydrogen Peroxide prices were stable

Despite the current challenges, Mr. Shankar expressed optimism, stating, "We believe that we are nearing the end of a long winter in PVC. While the last few quarters have indeed been very tough, we have used this period effectively to build capacity in our specialty businesses which would act as a springboard for future growth."

Chemplast Sanmar continues to focus on broadening its customer base and is positioning itself to capitalize on long-term opportunities in the specialty chemicals space.

As the company navigates through these challenging times, investors and industry observers will be watching closely to see how Chemplast Sanmar's strategic initiatives and market conditions evolve in the coming quarters.