JG Chemicals Limited, India's largest zinc oxide manufacturer, has reported a 4% year-on-year growth in consolidated revenue for the second quarter of fiscal year 2026, reaching Rs. 220.00 crores. The company also maintained a healthy EBITDA margin of 9.94% during the period.

Financial Performance

For Q2 FY26, JG Chemicals achieved the following financial results:

Dahej Expansion Project

JG Chemicals is making significant progress on its Rs. 100.00 crore greenfield expansion project in Dahej, Gujarat. Key highlights of the project include:

• Total capacity: 40,000 metric tons per annum of zinc chemicals
• Phase-1 commissioning: Expected in H1 FY27
• Revenue potential: Rs. 900.00 crores (once fully operational)
• Target markets: Ceramics, specialty chemicals, agro-chemicals, and tyre industries

Business Outlook

The company is optimistic about its growth prospects, citing several positive factors:

1. Increased demand from the tyre industry, expected to grow 7-8% annually
2. Expansion into non-rubber applications, aiming to increase their share from 15% to 30% in 4-5 years
3. Growing demand for zinc oxide in pharmaceuticals, cosmetics, and personal care segments
4. Development of a new recycled rubber product for the tyre industry, with trials set to begin in Q4 FY26

Management Commentary

Anirudh Jhunjhunwala, Managing Director and CEO, stated, "Our Dahej facility will significantly strengthen our presence in Western India and deepen our reach in the ceramic, specialty chemical, agro and tyre business sectors."

Anuj Jhunjhunwala, Whole-Time Director and CFO, added, "With logistics stabilizing and zinc prices showing improvement, we expect margins to be much better in the coming quarters."

The company's focus on sustainability and recycling continues to be an integral part of its operations, positioning JG Chemicals as a preferred supplier for high-performance applications in various industries.

As JG Chemicals moves forward with its expansion plans and diversification strategy, the company appears well-positioned to capitalize on the growing demand for zinc oxide across multiple sectors in India and internationally.

JG Chemicals Limited, India's largest zinc oxide manufacturer, reported robust financial results for the first quarter of fiscal year 2026 and unveiled plans for significant expansion in Gujarat.

Q1 FY26 Financial Highlights

The company posted consolidated revenues of ₹221.40 crores for the quarter, with EBITDA reaching ₹23.20 crores and profit after tax standing at ₹16.35 crores. These figures demonstrate JG Chemicals' strong market position and operational efficiency.

Major Expansion Plans

In a strategic move to strengthen its market presence, JG Chemicals' Board has approved a Greenfield capital expenditure of ₹100.00 crores for a new zinc chemicals facility in Dahej, Gujarat. This state-of-the-art plant will have an annual capacity of 40,000 metric tons and is expected to generate revenues of up to ₹900.00 crores once fully operational.

The company has already acquired 11.43 acres of land in Dahej for this expansion. Additionally, JG Chemicals has purchased 2.96 acres adjacent to its existing Naidupeta facility, paving the way for future brownfield expansion into advanced recycling products.

Market Leadership and Diversification

JG Chemicals currently holds the position of India's largest zinc oxide manufacturer and ranks among the top five globally. The company serves over 200 domestic customers and more than 50 international clients across 10+ countries, including 9 of the 10 top global tire companies and all 10 leading Indian tire manufacturers.

With its three existing plants operating at approximately 70% capacity utilization, JG Chemicals has a combined capacity of 70,000 metric tons per annum of zinc chemicals.

Focus on Non-Rubber Segment

The company aims to increase its share of non-rubber products from the current 15% to 30% over the next four to five years. This diversification strategy is expected to drive double-digit volume growth and expand margins by 200-300 basis points through the introduction of specialty products.

Sustainability and Recycling Initiatives

Anirudh Jhunjhunwala, Managing Director and CEO of JG Chemicals, emphasized the company's commitment to sustainability and recycling. He stated, "These two aspects remain key pillars of our growth strategy. We are actively evaluating several exciting opportunities in the recycling space that align with our core strengths."

R&D and Product Development

JG Chemicals is investing in the development of new products tailored for existing tire customers and industry needs. The company's R&D efforts are focused on increasing zinc oxide content per tire, which is expected to deepen its value proposition in this critical segment.

Outlook

With a favorable monsoon seasonal outlook, JG Chemicals anticipates strong demand across all end-user industries in the upcoming quarters. The company's continued focus on adding new customers across different applications has helped expand its overall customer base and drive sales momentum.

As JG Chemicals scales into higher-margin, higher-growth segments, it remains committed to disciplined capital allocation and agility in responding to evolving market conditions. The strategic expansion in Gujarat, coupled with its strong market position and focus on innovation, positions JG Chemicals for sustained growth in the coming years.