India's Directorate General of Trade Remedies (DGTR) has initiated a review investigation on imports of phthalic anhydride from China, Korea, and Thailand. This regulatory development represents a significant step in the ongoing evaluation of trade measures affecting the domestic petrochemical industry.

Investigation Scope and Coverage

The DGTR's review investigation encompasses phthalic anhydride imports from three major Asian economies. This action indicates the regulator's focus on assessing the current trade dynamics and their impact on India's domestic manufacturing sector.

Industry Implications

The investigation holds particular relevance for domestic petrochemical companies, including IG Petrochemicals , which operate in sectors that utilize or compete with phthalic anhydride products. Phthalic anhydride serves as a crucial industrial chemical with applications across multiple manufacturing segments.

Regulatory Process

DGTR review investigations typically involve comprehensive analysis of market conditions, pricing trends, and impact assessments on domestic industry participants. The outcome of such investigations can influence future trade policy decisions and protective measures for Indian manufacturers.

The investigation reflects India's continued focus on protecting domestic industry interests while maintaining balanced trade relationships with key Asian partners. Market participants and industry stakeholders will closely monitor the proceedings and eventual recommendations from the trade regulator.

Rama Petrochemicals Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing continued operational challenges with widened losses despite some revenue improvements in the nine-month period.

Quarterly Financial Performance

The company's standalone performance for Q3FY26 showed a deterioration in profitability metrics compared to the previous year. Revenue from operations remained relatively stable with marginal growth, while expenses continued to pressure the bottom line.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, presented a mixed picture with significant revenue growth but proportionally higher losses. The company's year-to-date performance reflected operational scaling challenges.

Cost Structure and Operational Challenges

The company's expense profile reveals significant structural challenges, with finance costs representing the largest component of total expenses. Employee benefit expenses and other expenditures also contributed substantially to the overall cost burden.

Key Expense Components (Q3FY26):

• Finance Cost: ₹160.81 lacs (82.21% of total expenses)
• Employee Benefits: ₹17.72 lacs
• Other Expenditure: ₹14.19 lacs
• Purchase of Stock-in-Trade: ₹2.54 lacs

Consolidated Results

The consolidated financial results, which include the subsidiary Rama Capital and Fiscal Services Private Limited, showed similar trends with marginally better performance metrics. Consolidated net loss for Q3FY26 stood at ₹184.50 lacs compared to ₹177.06 lacs in Q3FY25.

Auditor Observations and Corporate Governance

The statutory auditors Khandelwal & Mehta LLP issued a qualified conclusion regarding the company's treatment of ₹185.00 lacs payment towards release of collateral securities as 'Other Financial Assets'. The auditors noted this treatment is not in accordance with generally accepted accounting principles, resulting in higher retained earnings by ₹185.00 lacs as on December 31, 2025.

Capital Structure

The company's paid-up equity share capital increased to ₹1,172.42 lacs as of December 31, 2025, from ₹1,046.94 lacs in the corresponding period of the previous year, indicating capital infusion during the period.

The Board of Directors approved these results in their meeting held on January 28, 2026, with the Audit Committee having reviewed the financial statements prior to board approval.