Thirumalai Chemicals Limited has confirmed the allotment of 18.97 lakh equity shares on preferential basis at ₹296 each, completing another significant milestone in the company's capital structure expansion. This follows the recent completion of a preferential allotment to Ultramarine & Pigments Limited, which invested ₹45 crores in the chemical manufacturer.

Confirmed Equity Share Allotment

The company has officially completed the allotment of equity shares on preferential basis as part of its ongoing capital raising initiatives. The confirmed allotment demonstrates successful execution of the company's fundraising strategy in the chemical manufacturing sector.

Recent Preferential Allotment Transaction

Prior to this allotment, Ultramarine & Pigments completed a substantial investment through preferential allotment. The company subscribed to 15.20 lakh equity shares, strengthening its position as a promoter group entity.

Shareholding Changes

The preferential allotment resulted in changes to Ultramarine & Pigments' ownership stake in Thirumalai Chemicals Limited, increasing its influence within the company's promoter group structure.

Strategic Developments

These capital raising activities reflect Thirumalai Chemicals' focus on strengthening its financial position within the chemicals sector. The consistent pricing at ₹296 per share across both transactions indicates stable valuation expectations. The completion of the preferential allotment demonstrates the company's ability to execute its fundraising plans successfully, providing additional capital for business operations and growth initiatives.

Ultramarine & Pigments , a leading manufacturer of inorganic pigments, has reported mixed financial results for the second quarter of the fiscal year 2025-26. The company saw an increase in revenue but experienced a decline in net profit compared to the previous quarter.

Key Financial Highlights

Revenue Growth

Ultramarine & Pigments demonstrated resilience in its top-line performance, with revenue increasing to ₹1,960.00 crore in Q2 FY2025-26, up from ₹1,840.00 crore in the previous quarter. This represents a quarter-on-quarter growth of 6.52%, indicating improved sales and market demand for the company's products.

Profit Decline

Despite the revenue growth, the company experienced a slight decline in its bottom line. The net profit decreased to ₹193.60 crore in Q2 FY2025-26, compared to ₹201.90 crore in Q1 FY2025-26, marking a 4.11% reduction.

EBITDA Performance

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a marginal decrease, falling from ₹317.90 crore in Q1 to ₹316.50 crore in Q2 FY2025-26. This represents a slight decline of 0.44% quarter-on-quarter.

Margin Compression

Ultramarine & Pigments experienced a compression in its EBITDA margin, which decreased from 17.24% in Q1 to 16.14% in Q2 FY2025-26. This 110 basis points reduction in margin may indicate increased costs or pricing pressures in the market.

Conclusion

While Ultramarine & Pigments has shown strong revenue growth, the decline in profitability and margin compression are notable aspects of its Q2 FY2025-26 performance. The company's ability to navigate market challenges while capitalizing on growth opportunities may be crucial for its performance in the coming quarters.