Primo Chemicals Limited has announced a series of strategic decisions and its financial results for the first quarter of the fiscal year 2025-26. The company's board meeting, held on August 14, 2025, approved several significant measures and disclosed the financial performance for the quarter ended June 30, 2025.

Financial Performance

Primo Chemicals reported a consolidated net profit of Rs 407.76 crore for Q1 FY2025-26, a substantial improvement from the loss of Rs 1,124.97 crore in the same quarter of the previous year. The company's revenue from operations stood at Rs 1,419.38 crore, up from Rs 1,219.28 crore in Q1 FY2024-25.

Here's a breakdown of the key financial metrics:

The company's performance shows a significant turnaround, with a notable increase in profitability compared to the previous year.

Key Board Decisions

Secretarial Auditor Appointment

The board approved the appointment of M/s. A. Arora & Co., Practicing Company Secretary, as the Secretarial Auditor for a term of five consecutive years from FY2025-26 to FY2029-30, subject to shareholder approval.

Re-appointment of Independent Directors

The board approved the re-appointment of three Independent Directors - Shri Tilak Raj Bajalia, Shri Ashok Goyal, and Shri Kuldip Singh Suhag - for a second term of five years, from December 1, 2025, to November 30, 2030, subject to shareholder approval.

Acquisition of Flow Tech Chemicals

Primo Chemicals approved the acquisition of the remaining 51% stake in Flow Tech Chemicals Private Limited, a promoter group company. Primo already holds a 49% stake in Flow Tech, which manufactures chlorinated paraffin and hydrochloric acid. Flow Tech reported a turnover of Rs 275.01 crore in FY2024-25.

Annual General Meeting

The company's 50th Annual General Meeting is scheduled for September 30, 2025, to be held via video conferencing. The register of members and share transfer books will be closed from September 24, 2025, to September 30, 2025, for the purpose of the AGM.

These strategic decisions and the improved financial performance indicate Primo Chemicals' focus on strengthening its corporate governance and expanding its business operations. The acquisition of Flow Tech Chemicals is expected to enhance the company's product portfolio and market presence in the chemical industry.

Primo Chemicals Limited (PCL) has received a vote of confidence from CARE Ratings Limited, as the credit rating agency reaffirmed the company's ratings while upgrading its outlook from negative to stable. This development signals a potential improvement in the company's financial stability and credit profile.

Rating Details

CARE Ratings has reviewed and reaffirmed the following ratings for Primo Chemicals' bank facilities:

It's worth noting that the amount for long-term bank facilities has been reduced from Rs. 133.27 crore to Rs. 102.71 crore, potentially indicating a reduction in the company's long-term debt exposure.

Outlook Revision

The most significant aspect of this rating action is the revision of the outlook from negative to stable across all rated facilities. This change suggests that CARE Ratings perceives an improvement in Primo Chemicals' financial health and business prospects.

Implications

The reaffirmation of ratings, coupled with the improved outlook, may have several positive implications for Primo Chemicals:

1. Enhanced Credibility: The stable outlook could boost the company's credibility among investors, lenders, and other stakeholders.
2. Potential for Better Borrowing Terms: An improved credit profile might lead to more favorable borrowing terms in the future.
3. Investor Confidence: The rating action could positively influence investor sentiment towards the company.

Disclosure and Compliance

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Primo Chemicals promptly disclosed this information to the stock exchanges. The company received the rating update from CARE Ratings Limited via email on July 23, 2025, at 16:48 hours.

Primo Chemicals has also made this information available on its official website ( www.primochemicals.in ), ensuring transparency and easy access for all stakeholders.

As the chemical sector continues to evolve, Primo Chemicals' improved credit outlook may position the company to capitalize on growth opportunities while maintaining financial prudence. Investors and market watchers will likely keep a close eye on the company's performance in the coming quarters to see if this positive outlook translates into tangible financial improvements.