Meghmani Organics Limited held its Q3 FY26 earnings conference call on February 02, 2026, presenting mixed financial results amid challenging market conditions. The company reported standalone revenue of Rs. 485 crores with EBITDA of Rs. 51 crores and profit after tax of Rs. 22 crores for the quarter.

Segment-wise Performance Analysis

The company's revenue composition showed Crop Protection contributing 79% of total revenue, while the Pigment segment accounted for the remaining 21%. The performance varied significantly across segments:

Export Challenges and Market Dynamics

Chairman and Managing Director Ankit Patel highlighted that export volumes in Q3 faced additional pressure due to ongoing uncertainty around US trade policy. This uncertainty impacted not only demand from the US market, which represents 24%-25% of the company's agrochemical exports, but also led to softer demand across other export geographies. The company's formulation business now constitutes approximately 40% of the Crop Protection segment, with technicals making up the remaining 60%.

Titanium Dioxide Operations Suspended

The company took the difficult decision to shut down its Titanium Dioxide plant in November 2025 due to challenging market conditions. The shutdown was necessitated by elevated raw material costs, particularly Sulfuric Acid prices rising from Rs. 4-5 to Rs. 15-18 per unit, and the withdrawal of anti-dumping duties following a court order in September 2025. The Directorate General of Trade Remedies (DGTR) is expected to re-impose anti-dumping duties shortly after addressing procedural lapses.

Nine-Month Financial Performance

For the nine months ended December 31, 2025, the company showed improved performance:

Debt Position and Capital Allocation

As of December 31, 2025, the company's standalone debt stood at Rs. 573 crores, comprising Rs. 455 crores in short-term debt and Rs. 118 crores in long-term debt, resulting in a debt-to-equity ratio of 0.33. On a consolidated basis, total debt was Rs. 783 crores with a debt-to-equity ratio of 0.51. The company achieved debt repayment of approximately Rs. 128 crores during the year.

Future Outlook and Strategic Initiatives

Management expressed confidence in long-term growth prospects despite near-term headwinds. In the Crop Nutrition segment, the company is actively developing international markets for Meghmani Nano Urea, with sample consignments being dispatched for field evaluation across multiple countries. The Nano Urea business currently operates at margins of 20%-22% when running at optimal capacity levels.

The company expects no significant capital expenditure over the next two years, focusing instead on operational improvements and market recovery. Management anticipates the Pigment segment to show improvement from Q1 FY27 onwards through operational efficiency measures and renewable energy adoption, targeting 60% renewable energy usage in the coming years.

Meghmani Organics Limited has submitted its investor presentation on Q3FY26 financial results to stock exchanges under Regulation 30 of SEBI (LODR) Regulations, 2015. The presentation covers the company's unaudited financial results for the quarter and nine months ended December 31, 2025.

Regulatory Compliance and Disclosure

The investor presentation was submitted by Company Secretary & Compliance Officer Jayesh Patel on January 31, 2026. The comprehensive document is also available on the company's website at www.meghmani.com for stakeholder access.

Business Overview and Diversified Portfolio

The presentation highlights Meghmani Organics as an integrated diversified chemical company with global footprint, boasting 39 years of chemical industry experience. The company operates across four key business verticals: Crop Protection, Pigments, Titanium Dioxide (TiO₂), and Crop Nutrition.

Segment-wise Operations Structure

The company's diversified operations span multiple manufacturing locations with specialized facilities for each business vertical. The Crop Protection segment operates from Ankleshwar, Panoli & Dahej with 4 manufacturing facilities, while Pigments operations are based at Vatva, Panoli, Dahej SEZ with 3 facilities.

Leadership and Governance Structure

The presentation outlines the company's leadership team headed by Chairman & Managing Director Ankit Patel, who brings over a decade of chemical industry experience and holds degrees in Chemical Engineering and Global MBA. The board includes Executive Directors Karana Patel and Darshan Patel, along with several independent directors including Padmashri Awardee Prof. (Dr.) Ganapati Yadav.

Market Position and Investment Highlights

Meghmani Organics serves approximately 10 million Indian farmers through its extensive network and maintains global presence across 75+ countries including Africa, Brazil, LatAm, US and Europe. The company's Crop Protection segment receives 45% demand from US & Brazil markets, while maintaining 90% business from repeat clients in the Pigments segment.

Source: SEBI Filing