Epigral’s Q2 results for FY27 show a 26% year-on-year rise in profit after tax to Rs 64 crore, while the chemical manufacturer prepares to add major capacity at its Dahej manufacturing complex in Gujarat.
The company’s profit after tax increased from Rs 51 crore in the corresponding quarter a year earlier. Revenue from operations rose 28% to Rs 752 crore from Rs 589 crore, supported by a 6% increase in sales volumes and improved realisations, according to the company’s quarterly performance details reported by Times of India – Ahmedabad.
Despite the revenue growth, higher raw material costs reduced operating profitability. Epigral’s earnings before interest, taxes, depreciation and amortisation rose 3% to Rs 136 crore, but its EBITDA margin declined to 18% during the quarter.
The company’s derivatives and specialty chemicals business accounted for 57% of revenue, compared with 50% in the year-ago quarter. The shift indicates a larger contribution from higher-value chemical products within Epigral’s business mix.
Epigral spent Rs 88 crore on capital expenditure during the first half of FY27. Its additional CPVC resin capacity of 75,000 tonnes per annum and epichlorohydrin capacity of 50,000 tonnes per annum are expected to be commissioned in the third quarter of FY27.
Once these additions are operational, the company’s total CPVC resin capacity is expected to reach 1.5 lakh tonnes per annum, while epichlorohydrin capacity will rise to 1 lakh tonnes per annum. CPVC resin is used in plumbing and piping applications, while epichlorohydrin is an input for products including epoxy resins.
The company’s board has also approved two projects at its Dahej manufacturing complex. These include an epoxy resin and formulations plant with an annual capacity of 1.25 lakh tonnes and a multi-purpose downstream plant. Both projects are expected to be commissioned in the second half of FY28.
The expansion programme will increase Epigral’s manufacturing footprint across CPVC resin, epichlorohydrin, epoxy products and downstream chemicals. The projects also place its Dahej complex at the centre of the company’s planned capacity growth, although the company’s reported results show that input-cost pressure continues to affect margins.
Chairman and managing director Maulik Patel said Epigral expects stronger performance in the second half of FY27, which traditionally contributes more to its annual business. He attributed the quarter’s revenue growth to higher volumes and improved realisations while acknowledging the effect of elevated raw material prices on margins.
The next reported milestones are the expected commissioning of the additional CPVC resin and epichlorohydrin capacity in Q3FY27, followed by the planned commissioning of the two Dahej projects in the second half of FY28.
