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Zinc price volatility impacting working capital
View Risks →JG Chemicals Ltd — Q3 FY26
JG Chemicals delivered its highest-ever quarterly revenue of ₹249 crore (up 19% YoY), EBITDA of ₹26 crore, and PAT of ₹18 crore, driven by strong tire industry demand post-GST rate cuts, improved product mix, and higher capacity utilization.
bullish
high
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JG Chemicals delivered its highest-ever quarterly revenue of ₹249 crore (up 19% YoY), EBITDA of ₹26 crore, and PAT of ₹18 crore, driven by strong tire industry demand post-GST rate cuts, improved product mix, and higher capacity utilization. The company is executing a greenfield expansion in Gujarat (Phase I capex ~₹45-50 crore, revenue potential ~₹400 crore) expected to commission in Q2 FY27, alongside a brownfield expansion at Naidupa. Management targets doubling revenue every 3-4 years and improving EBITDA margins to 13-14% over 2-3 years via operating leverage and non-rubber mix shift to 70:30. A pilot recycled rubber project shows encouraging initial results. Key risk: zinc price volatility could impact working capital, though management expects inventory gains to flow in Q4.
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Capacity Utilization
~80%
+5pp YoY
Utilization in late 70s of achievable capacity; target 80-85% for efficient operations.
Non-Rubber Revenue Mix
15-17%
+5pp YoY
Non-rubber segment (pharma, ceramics, specialty chemicals) increased from 10% to ~15-17%.
Export Share
13-14%
flat YoY
Exports remain in 10-15% range; management does not expect near-term increase to 25-30%.
Volume Growth (Zinc Oxide)
Double-digit
+10%+ YoY
Zinc oxide volumes grew double-digit YoY in 9M FY26; exact figures not disclosed.
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Guidance and risk preview
Phase I of the Gujarat plant (40,000 MTPA capacity) expected to commission in Q2 FY27, with full utilization in 2-2.5 years.
Rising zinc prices may increase working capital requirements; management believes internal cash flows are sufficient but risk remains if prices spi...
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