Risks
3 risks
Risk Intelligence
Geopolitical disruption impacting raw material supply and energy costs
View Risks →J.G.Chemicals Limited — Q4 FY26
JG Chemicals delivered a strong Q4 FY26 with revenue of ₹286.2 crore (+27.6% YoY), EBITDA of ₹26.8 crore, and PAT of ₹18.9 crore, driven by robust tire demand post-GST cuts and volume growth in the mid-teens.
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
JG Chemicals delivered a strong Q4 FY26 with revenue of ₹286.2 crore (+27.6% YoY), EBITDA of ₹26.8 crore, and PAT of ₹18.9 crore, driven by robust tire demand post-GST cuts and volume growth in the mid-teens. Full-year revenue hit a record ₹972.9 crore with EBITDA of ₹97.9 crore and PAT of ₹68.6 crore. Management highlighted successful pass-through of March raw material and energy cost spikes from April 1, with margins expected to normalize to 10-11% in Q1 FY27. The Gujarat plant (Phase I) is on track for H1 FY27 commissioning, targeting 30-40% utilization in H2 and 65-70% by FY28. The recycled rubber pilot received strong customer validation, with commercial scale details to follow. Key risk: geopolitical disruptions could continue to pressure raw material availability and energy costs, potentially impacting near-term margins.
JG Chemicals ने चौथी तिमाही (Q4 FY26) में शानदार प्रदर्शन किया। कंपनी की कमाई ₹286.2 करोड़ रही, जो पिछले साल से 27.6% ज्यादा है। मुनाफा ₹18.9 करोड़ रहा। इसकी वजह टायरों की बढ़ी मांग और बिक्री में 15% से ज्यादा का उछाल है। पूरे साल की कमाई ₹972.9 करोड़ के रिकॉर्ड स्तर पर पहुंच गई। कंपनी ने कच्चे माल और बिजली की बढ़ी लागत को 1 अप्रैल से ग्राहकों पर डाल दिया है। अगली तिमाही में मुनाफा 10-11% रहने की उम्मीद है। गुजरात में नया कारखाना 2027 की पहली छमाही में शुरू होगा। रिसाइकल रबर के ट्रायल को ग्राहकों ने पसंद किया है। खतरा: दुनिया भर के हालात कच्चे माल और बिजली की कीमतें बढ़ा सकते हैं, जिससे मुनाफा कम हो सकता है।
Risks3 trackedTranscriptfull text
Research workspace
Focused Modules
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Zinc Oxide Capacity Utilization
77%
Flat vs prior quarter
Current utilization at late 70s; can be ramped to 86-87% within calendar year.
Zinc Sulfate Capacity Utilization
60%
Flat vs prior quarter
Zinc sulfate utilization at ~60% of installed capacity; demand expected to recover.
Export Contribution to Sales
10-15%
Flat vs prior year
Exports remain steady at 10-15% of total sales.
Number of Zinc Oxide Grades
90+
+10 grades YoY
Increased from 80+ grades at end of FY25 to 90+ at end of FY26.
What Changed vs Last Quarter
NEW
Gujarat plant utilization target: 30-40% in H2 FY27, 65-70% in FY28
Management expects the Gujarat plant to reach 30-40% utilization in the second half of FY27 and 65-70% in FY28.
NEW
Debottlenecking at Naidupeta to complete by December 2026
Incremental debottlenecking at the Naidupeta facility is ongoing and expected to be fully completed by December 2026.
NEW
EBITDA margins to return to 10-11% range in Q1 FY27
After passing on March cost increases from April 1, margins should normalize to the regular 10-11% EBITDA margin range.
UPDATED
Gujarat plant Phase I commissioning in H1 FY27
The greenfield facility at Dahi (Gujarat) will be commissioned in the first half of FY27, with Phase I zinc oxide production starting as planned.
DROPPED
Revenue target of ₹900-950 crore for FY26
Based on 9M run rate of ~₹700 crore, management expects FY26 revenue to exceed ₹900 crore, potentially reaching ₹950 crore.
DROPPED
EBITDA margin expansion to 13-14% in 2-3 years
Core EBITDA margin of 10.5-11% expected to improve to 13-14% through operating leverage and higher specialty product mix.
DROPPED
Non-rubber revenue mix target of 30% in 2-3 years
Management targets increasing non-rubber contribution from current 15-17% to 30% over the next 2-3 years.
NEW RISK
Geopolitical disruption impacting raw material supply and energy costs
The ongoing war caused a freeze in Middle East imports and delays from Europe in March, forcing spot purchases at higher LME and doubling energy costs, which compressed margins by ~150 bps.
NEW RISK
Slowdown in ceramic industry due to gas shortages
Analyst raised concern about plant shutdowns in Morbi (ceramic hub) due to gas shortages, which could impact demand for zinc oxide from that sector.
NEW RISK
Flat non-rubber revenue share despite focus on diversification
Non-rubber revenue share did not increase in FY26; management attributed this to geographic concentration of non-rubber demand in Gujarat, which will only be addressed once the Dahi plant starts.
RISK GONE
Zinc price volatility impacting working capital
Rising zinc prices may increase working capital requirements; management believes internal cash flows are sufficient but risk remains if prices spike sharply.
RISK GONE
Slower ramp-up of new Gujarat plant
Commissioning in Q2 FY27 with full utilization expected in 2-2.5 years; any delays or slower customer uptake could impact revenue growth.
RISK GONE
Duty removal on zinc dross not yet implemented
Budget removed import duty on zinc scrap but not on zinc dross, a key raw material; management is lobbying for correction, but uncertainty remains.
RISK GONE
Zinc sulfate demand sensitivity to farmer pricing
High zinc and sulfuric acid prices are causing farmers to defer purchases, leading to slower offtake; recovery depends on price stabilization.
Fast read
Guidance and risk preview
The greenfield facility at Dahi (Gujarat) will be commissioned in the first half of FY27, with Phase I zinc oxide production starting as planned.
The ongoing war caused a freeze in Middle East imports and delays from Europe in March, forcing spot purchases at higher LME and doubling energy co...
View Risks →