Epigral’s profit rises 26% to 64 crore rupees in second quarter
Key Facts
Epigral said its net profit after tax rose 26% year on year to 64 crore rupees in the second quarter of fiscal 2027, compared with 51 crore rupees in the year-earlier period. The company said in an investor presentation that sales volumes increased 6% despite market conditions it described as challenging and volatile. Chairman and Managing Director Mulk Patel attributed the 28% revenue growth to improvement in a difficult operating environment. The company said better realisations were the main driver of revenue growth, alongside higher sales volumes. This reflects revenue expanding faster than volumes, while raw-material costs constrained operating profit gains.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were 136 crore rupees for the quarter, compared with 132 crore rupees a year earlier, while the margin was unchanged at 18%. Epigral attributed the level to higher raw-material costs and said those costs curbed the margin despite revenue growth. The comparison between limited growth in operating profit and the increase in net profit shows that the measures did not move at the same pace during the quarter. The company did not provide a quantitative breakdown of the contribution from improved realisations or raw-material costs in the figures presented. It did, however, explicitly link revenue growth to a combination of higher volumes and better realisations, and margin pressure to higher raw-material prices.
The revenue mix shifted toward derivatives and specialty chemicals, whose share rose to 57% in the second quarter from 50% in the same period of the previous fiscal year. This change points to a larger share of these businesses in the company’s revenue, alongside its announcement of new expansions in some products. In the first half of fiscal 2027, revenue rose 21% to 1,461 crore rupees from 1,204 crore rupees. EBITDA increased 7% to 315 crore rupees from 296 crore rupees, with a margin of 22%. First-half net profit rose 25% to 164 crore rupees, compared with 131 crore rupees after excluding an exceptional tax effect from the prior-period comparison.
Epigral said first-half net profit in the previous fiscal year was 212 crore rupees after reducing its deferred tax liability by 81 crore rupees. The company uses 131 crore rupees for the year-on-year comparison after excluding this effect, explaining why the comparison base differs from the previously reported figure. The company spent 88 crore rupees on capital expenditure in the first half of fiscal 2027. Net debt to EBITDA was 0.9 times on September 30, 2026, compared with 0.8 times on September 30, 2025. These figures place spending on expansions alongside a slight increase in leverage compared with the previous year.
Patel said the company was optimistic about the second half of fiscal 2027, adding that the second half traditionally delivers stronger performance than the first. He said the CPVC resin and epichlorohydrin expansions had reached their final stages, with trial operations under way, and that the company expected both plants to begin operations in about a quarter. The company expected to bring on additional CPVC resin capacity of 75 thousand tonnes a year and additional epichlorohydrin capacity of 50 thousand tonnes a year in the third quarter of fiscal 2027. It also listed an additional 19.80 megawatt hybrid wind and solar power plant for expected commissioning at the same time. The company expected its 125 thousand tonnes a year epoxy resins and formulations plant, along with a multipurpose plant, to come on stream in the second half of fiscal 2028.