Ultramarine & Pigments Invests ₹45 Crores in Thirumalai Chemicals Through Preferential Allotment

Ultramarine & Pigments has completed a significant investment in Thirumalai Chemicals Limited (TCL) through a preferential allotment of equity shares. The company subscribed to 15.20 lakh equity shares of TCL, increasing its shareholding to 18.23%.

Investment Details

The investment transaction involved a substantial financial commitment from Ultramarine & Pigments. The company subscribed to 15,20,270 equity shares of TCL at a price of ₹296.00 per equity share, which includes a premium of ₹295.00 per share.

Parameter	Details
Number of Shares	15,20,270 equity shares
Price per Share	₹296.00
Premium per Share	₹295.00
Total Investment	₹45.00 crores

Shareholding Impact

As a promoter group entity of Thirumalai Chemicals Limited, this preferential allotment has resulted in changes to Ultramarine & Pigments' ownership stake in TCL.

Shareholding Details	Pre-Preferential Issue	Post-Preferential Issue
Number of Equity Shares	2,04,51,770	2,19,72,040
Percentage Holding	17.24%	18.23%

Regulatory Compliance

The disclosure follows the company's earlier intimation dated October 29, maintaining transparency with stakeholders regarding this strategic investment. According to the disclosure submitted by TCL to the stock exchanges on December 23, the allotment of 15,20,270 equity shares to Ultramarine & Pigments has been completed at the specified price of ₹296.00 per equity share.

Strategic Significance

This investment represents a strategic move by Ultramarine & Pigments to strengthen its position within the chemicals sector. The preferential allotment mechanism allowed the company to acquire additional equity shares in TCL, enhancing its influence as a promoter group entity. The transaction demonstrates the company's commitment to expanding its stake in related chemical manufacturing operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.12%	-2.40%	-3.69%	-16.12%	-26.13%	+79.20%

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

Metric	Q2 FY2025-26	Q1 FY2025-26	QoQ Change
Revenue	₹1,960.00	₹1,840.00	+6.52%
Net Profit	₹193.60	₹201.90	-4.11%
EBITDA	₹316.50	₹317.90	-0.44%
EBITDA Margin	16.14%	17.24%	-110 bps

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.