Thirumalai Chemicals Limited released its corporate presentation for Q3FY26 and nine months ended December 2025, revealing mixed performance amid challenging market conditions. The company, established in 1944 as a chemical trading venture, has evolved into a diversified chemical manufacturer with global operations spanning India, Malaysia, and now the USA.

Financial Performance Overview

The company's Q3FY26 consolidated results reflected the impact of market headwinds across key segments. Revenue from operations declined to ₹420 crore compared to ₹447 crore in Q3FY25, while the company reported negative EBITDA of ₹11 crore, an improvement from negative ₹20 crore in the previous year quarter.

For the nine months ended December 2025, consolidated revenue stood at ₹1,322 crore compared to ₹1,539 crore in the corresponding period of FY25, representing a 14% decline.

Market Challenges and Operational Factors

The company faced multiple headwinds during Q3FY26 that impacted performance across business segments. In the Phthalic Anhydride (PAn) segment, paints demand remained subdued due to prolonged monsoon conditions, with recovery expected in Q4. The Unsaturated Polyester Resin (UPR) demand weakened in October-November due to increased US tariffs, with key producers operating at approximately 40-50% capacity.

Chlorinated Paraffin Compound (CPC) manufacturers operated at around half capacity, primarily to maintain plant operations as domestic demand remained weak and exports were impacted by tariffs and lower European demand. Rising raw material costs in CPC intensified cost pressures, leading to strong resistance to PAn price increases.

USA Facility Milestone

A significant development during the quarter was the commencement of the first phase of commercial operations at the company's USA facility in December 2025. This strategic expansion positions Thirumalai Chemicals as one of the largest global manufacturers of Malic Acid (MAc) and Fumaric Acid (FAc) worldwide.

Operational Improvements and Sustainability

Despite market challenges, the company achieved several operational improvements. The large reactor in Ranipet operated without interruption for over 400 days, while energy cost optimization and process improvements were implemented in the food ingredients segment. At the Dahej facility, the changeover to gas-based energy continued to yield benefits, with the plant operating at steady rates since August 2025.

The company maintains strong sustainability commitments, including 25% reduction in GHG emissions by 2030, 10% reduction in water consumption, and 100% process water treatment through Zero Liquid Discharge systems. Currently, 36% of total energy is sourced from renewable sources, with 94% of on-site energy consumption met through internal waste heat recovery.

Thirumalai Chemicals Limited has successfully completed the full utilization of proceeds from its preferential issue, as confirmed in the final monitoring agency report submitted for the quarter ended December 31, 2025. The company filed the report with stock exchanges on February 14, 2026, pursuant to Regulation 32 of SEBI Listing Regulations.

Complete Utilization of Issue Proceeds

The monitoring report, prepared by Crisil Ratings Limited, confirms that the entire preferential issue amount of Rs. 450.63 crore has been fully utilized according to the disclosed objects. The deployment was completed during the quarter ended December 31, 2025, with no deviations from the original plan.

Capital Expenditure Progress

The largest component of Rs. 330.00 crore was invested in TCL Global BV for onward investment into TCL Specialties LLC in the United States. During the reported quarter, the company infused Rs. 2.47 crore in TCL Global BV, while Rs. 107.93 crore from the previous quarter was transferred to TCL Specialties LLC. The total amount of Rs. 118.06 crore utilized during the quarter was deployed for capital expenditure as planned.

General Corporate Purposes Deployment

The general corporate purposes allocation of Rs. 110.90 crore was fully utilized for operational payments. During the quarter, Rs. 11.73 crore was deployed, primarily for payments to Total Energies Trading Asia Pte. Ltd. for raw material purchases. This amount included Rs. 10.83 crore carried over from the previous quarter and Rs. 0.90 crore transferred from the monitoring account.

Regulatory Compliance and Approvals

The monitoring report confirms that all government and statutory approvals related to the objects have been obtained, including the National Pollutant Discharge Elimination System (NPDES) approvals. All technical assistance and collaboration arrangements are operational, with TCL Technology & Engineering serving as the EPC contractor for the capex project.

Final Monitoring Report

This represents the final monitoring agency report for the preferential issue, as the entire proceeds have been fully utilized. The Audit Committee reviewed the report, and the Board of Directors took it on record at their meeting held on February 14, 2026. With the completion of fund utilization, both the preferential issue account and monitoring account balances stand at nil.