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Overcapacity in CPVC and ECH from competitors
View Risks →Epigral Limited — Q3 FY26
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.
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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.
एपिग्रल की तीसरी तिमाही के नतीजे कमजोर रहे। कंपनी का मुनाफा मार्जिन घटकर 17% रह गया, जो पिछले 9 महीने के औसत 22% से कम है। इसकी वजह कम बिक्री मूल्य, कच्चे माल की बढ़ी लागत और महंगा पुराना स्टॉक था। कुल बिक्री पिछली तिमाही से सिर्फ 2% बढ़कर ₹6,003 करोड़ रही। डेरिवेटिव और स्पेशलिटी उत्पादों से 52% कमाई हुई। फैक्ट्री का उपयोग 78% पर स्थिर रहा। कंपनी ने कहा कि लंबी बारिश और भू-राजनीतिक अनिश्चितता से कमजोरी आई, लेकिन नवंबर के मध्य से मांग बढ़ी है। उम्मीद है कि चौथी तिमाही में मार्जिन 21-23% तक सुधरेगा। नए क्लोरोटोल्यूईन प्लांट से अगले वित्त वर्ष से फायदा मिलेगा। खतरा: CPVC और ECH में प्रतिस्पर्धियों के विस्तार से क्षमता से अधिक उत्पादन हो सकता है, जिससे मार्जिन पर दबाव पड़ेगा।
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Derivatives & Specialty Revenue Share
52%
+2pp QoQ
Revenue share from derivatives and specialty business increased from 50% in Q2 to 52% in Q3.
Plant Utilization
78%
flat QoQ
Overall plant utilization remained at 78%, similar to Q2, but down from 81% in Q3 FY25.
ECU (Caustic Soda Equivalent)
₹29,000-30,000
down ₹500-2,000 QoQ
ECU realization was around ₹29,000-30,000, marginally lower than the previous quarter.
CPVC Realization
₹95-100/kg
down QoQ
CPVC realization declined to ₹95-100 per kg from higher levels in Q2, impacted by falling PVC prices.
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Guidance and risk preview
Management expects EBITDA margin to improve to 21-23% in Q4, driven by higher PVC/CPVC prices and better demand.
Reliance and Adani are expanding PVC/CPVC capacity, and other players may backward integrate, potentially leading to pricing pressure and lower uti...
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