Thirumalai Chemicals Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a significant decline in performance compared to the previous year. The company reported substantial losses on both standalone and consolidated basis, marking a challenging quarter for the specialty chemicals manufacturer.

Financial Performance Overview

The company's standalone financial performance showed a marked deterioration during Q3FY26. Revenue from operations declined substantially, while the company moved from profitability to losses compared to the same quarter in the previous fiscal year.

Consolidated Results

On a consolidated basis, the company's performance was even more challenging, with higher losses reported across key metrics. The consolidated revenue also witnessed a significant decline year-on-year.

Nine-Month Performance

For the nine months ended December 31, 2025, the standalone revenue from operations was ₹1,10,278 lakhs compared to ₹1,57,386 lakhs in the corresponding period of FY25. The company reported a standalone net loss of ₹5,457 lakhs for the nine-month period versus a profit of ₹4,470 lakhs in the previous year.

Leadership Changes

The company announced significant changes in its leadership structure during the board meeting held on February 14, 2026.

Director Resignation

Mr. Arun Alagappan tendered his resignation as Independent Director, effective from the closure of business hours on March 31, 2026. He cited increased professional commitments and demands at his own organization where he holds an executive role as the reason for resignation.

New Appointment

Mr. K. Anand Kumar has been appointed as President-Finance and designated as Senior Management Personnel effective February 14, 2026. He is an Associate Member of the Institute of Chartered Accountants of India (ICAI) and the Institute of Cost Accountants of India (ICMAI), and holds an Executive MBA from IIM Bangalore with over 24 years of experience across diverse industries.

Operational Updates

TCL Specialties LLC, USA, a step-down wholly owned subsidiary of Thirumalai Chemicals Limited, commenced the phased commissioning of its Maleic Anhydride plant in December 2025. The phased commissioning process is expected to be completed and stabilized progressively during the first half of calendar year 2026.

Recent Capital Raising

The company had undertaken preferential issues during FY26, allotting 1,62,68,040 equity shares on August 26, 2025, at ₹277 per share aggregating to ₹45,062 lakhs, and 18,96,614 equity shares on December 23, 2025, at ₹296 per share aggregating to ₹5,614 lakhs.

Thirumalai Chemicals Limited has received a credit rating downgrade from ICRA Limited, with the rating agency revising its assessment across multiple debt instruments totaling ₹1,317.55 crores. The company informed the stock exchanges on January 13, 2026, about the rating action communicated by ICRA on January 12, 2026.

Rating Downgrade Details

ICRA has downgraded the company's credit ratings to [ICRA]BBB+ (Negative) for long-term instruments and [ICRA]A2 for short-term facilities. The rating agency cited moderation in the company's performance and increase in US project costs as the primary reasons for this downgrade.

Facility-wise Breakdown

The downgrade encompasses various banking facilities across multiple lenders. The term loans of ₹437.05 crores are distributed among IDFC FIRST Bank Limited (₹212.05 crores), Federal Bank Limited (₹200.00 crores), and CSB Bank Limited (₹25.00 crores). The fund-based working capital facilities of ₹480.50 crores include limits with Axis Bank Limited (₹150.00 crores), IDFC FIRST Bank Limited (₹180.00 crores), ICICI Bank Limited (₹150.00 crores), and Federal Bank Limited (₹0.50 crores).

Non-Convertible Debentures Impact

The rating downgrade also affects the company's non-convertible debentures program worth ₹100.00 crores. The debentures are distributed across three ISIN codes: INE338A07021 (₹33.00 crores), INE338A07013 (₹33.00 crores), and INE338A07039 (₹34.00 crores). All these instruments now carry the [ICRA]BBB+ (Negative) rating.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by informing both BSE Limited and National Stock Exchange of India Limited about the rating action. The communication was signed by Company Secretary Aditya Sharma and submitted to the exchanges with the company's scrip codes 500412 (BSE) and TIRUMALCHM (NSE).

Rating Surveillance and Future Reviews

ICRA has indicated that the ratings will become due for surveillance within one year from the date of the rating communication. The rating agency reserves the right to review and revise the ratings at any time based on new information or circumstances that could impact the company's creditworthiness. Investors and lenders are advised to visit ICRA's website for the latest rating updates on the company.