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Revenue
₹597 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹103 Cr
latest reported figure
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What the record says.
Epigral's Q3 FY26 results were weak, with EBITDA margin contracting to 17% (vs 22% 9M average) due to lower realizations, higher raw material costs, and high-cost inventory. Revenue grew marginally 2% QoQ to ₹6,003 crore, with derivatives and specialty contributing 52% of revenue. Plant utilization was flat at 78%. Management attributed the weakness to prolonged monsoon and geopolitical uncertainty, but noted volume pickup from mid-November. Guidance points to margin recovery to 21-23% in Q4, driven by improving PVC/CPVC prices and demand. The chlorotoluene plant, commissioned in March 2025, is expected to contribute meaningfully from FY27. Capex for CPVC, ECH, and power projects remains on track. Key risk: potential overcapacity in CPVC and ECH as competitors expand, which could pressure utilization and margins in FY27-28.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects EBITDA margin to improve to 21-23% in Q4, driven by higher PVC/CPVC prices and better demand.
- The chlorotoluene plant, commissioned in March 2025, is expected to generate sizable revenue and profit from FY27 onwards as customer approvals and long-term contracts ramp up.
- The CPVC capacity expansion project is progressing on schedule and within budget, with commissioning expected around September 2026.
- Management is finalizing a new chemistry capex plan and expects to announce details in the next couple of months, targeting growth from FY29 onwards.
Risks flagged
- Reliance and Adani are expanding PVC/CPVC capacity, and other players may backward integrate, potentially leading to pricing pressure and lower utilization for Epigral's new capacities.
- The chlorotoluene plant is still in early stages with customer approvals and long-term contracts not yet secured; meaningful contribution may be delayed beyond FY27.
- Q3 margins were hit by high-cost inventory and falling PVC prices; if raw material prices rise again without corresponding product price increases, margins could remain under pressure.
- US-India trade tensions, tariff impacts, and global geopolitical issues could affect export volumes and realizations, especially for ECH and other specialty chemicals.
Key quotes
- We believe that Q3 was impacted in that manner but Q4 onwards we believe that the margin will be uptick but again we believe that it should be in the range of kind of a 21 to 23 or 25% 22 23% kind of a range.
- So we tend to believe I mean in the current quarter and also coming this is kind of a uh new normal which will continue.
- So maybe for initial 6 months or a year's time we have to run our plant at lower utilizations but eventually considering the growth which is expected into the epoxy which will lead to growth in ECH and in terms of real estate which will drive the growth in CPVC we tend to believe that you know maybe matter of one or two years we should be able to run our plant at optimum utilization levels.
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