Mangalam Organics , a leading manufacturer of pine chemicals and camphor-based products, has reported a robust 14.30% year-on-year revenue growth for the second quarter of fiscal year 2026. The company's revenue increased to Rs 158.10 crores in Q2 FY26, compared to Rs 138.32 crores in the same quarter of the previous year.

Improved Profitability

The company's performance in Q2 FY26 was marked by improved profitability, which management attributes to decreased input costs. This cost optimization has allowed Mangalam Organics to strengthen its bottom line despite ongoing market challenges.

Strategic B2B-to-B2C Transformation

A key highlight of Mangalam Organics' recent performance is its strategic shift from a primarily B2B pine chemicals manufacturer to include B2C operations. This transformation is centered around the company's CamPure brand of camphor-based home care products.

Expanding Distribution Network

As part of its B2C strategy, Mangalam Organics has significantly expanded its distribution network. The company now operates across 14 states, supported by a sales force of 190 personnel. This expanded reach is expected to drive further growth in the consumer segment.

Financial Performance Overview

All figures in Rs crores

While the company saw significant revenue growth, it's important to note the substantial decrease in EBITDA. However, the company managed to increase its Profit After Tax (PAT) by 50.94% year-over-year, indicating effective cost management and potentially favorable tax conditions.

Future Outlook

Mangalam Organics' strategic pivot towards B2C operations, coupled with its expanded distribution network, positions the company for potential growth in the consumer segment. The management's focus on the CamPure brand of camphor-based home care products may help diversify revenue streams and reduce dependence on B2B pine chemicals.

As the company continues its transformation, investors and industry observers will likely keep a close eye on how successfully Mangalam Organics balances its traditional B2B operations with its growing B2C segment, and whether this strategy translates into sustained profitability and market share gains in the coming quarters.

Mangalam Organics , a leading manufacturer of camphor and other terpene chemicals, has announced a significant change in its funding strategy. The company has executed a binding loan facility agreement with Yes Bank Limited for ₹50 crore, while simultaneously cancelling its previously approved plan to issue non-convertible debentures (NCDs).

Loan Facility Details

The newly secured loan facility with Yes Bank comprises:

• Working capital limits of ₹48.00 crore, including sublimits for Letter of Credit (L/C), Working Capital Demand Loan (WCDL), and term loan facility
• An unsecured forward cover limit of ₹2.00 crore

This strategic move comes after the Board of Directors reviewed the company's funding strategy and decided to cancel the earlier proposal for issuing secured, unlisted, unrated, senior non-convertible debentures worth up to ₹60.00 crore.

Purpose and Terms of the Loan

According to the company's disclosure, the loan facility will be utilized for:

1. Working capital requirements
2. Capital expenditure towards reinstatement of the camphor plant
3. General working capital needs

The agreement includes security measures such as:

• Hypothecation of plant and machinery
• Hypothecation of current assets
• Equitable mortgage of factory land
• Personal guarantees

Key Points of the Transaction

• Yes Bank Limited holds no shareholding in Mangalam Organics
• The bank is not related to the promoters or promoter group of the company
• The transaction is not classified as a related party transaction
• No nominees or directors will be appointed to the company's board by Yes Bank as a result of this agreement

Impact on Operations

This infusion of funds is expected to support Mangalam Organics' operations, particularly in reinvigorating its camphor production capabilities and meeting working capital requirements. The shift from the planned NCD issuance to a bank loan facility may indicate the company's preference for more flexible financing options.

Market Implications

This development showcases Mangalam Organics' ability to secure significant funding through traditional banking channels. The cancellation of the NCD issuance in favor of a bank loan might be viewed positively by investors, as it potentially reduces the company's debt burden and associated costs.

As Mangalam Organics moves forward with this new financial arrangement, stakeholders will likely keep a close eye on how effectively the company utilizes these funds to drive growth and enhance its market position in the terpene chemicals sector.