Black Rose Industries Ltd Q1 FY26 – Acrylamide, Adhesives & A Dividend That Smells Better Than Its Chemicals
1. At a Glance
CMP ₹99.2, market cap ₹506 Cr, P/E 24.6, book value ₹30, ROE 14.2%, ROCE 19%. Debt is negligible at ₹11 Cr, and dividend yield is 1.06%. FY25 sales were ₹391 Cr, PAT ₹21 Cr, OPM 8%. The stock has been roasted harder than Diwali firecrackers — down 30% in the last year and down ~19% in three years. In short, Black Rose has been manufacturing acrylamide but delivering heartbreak.
2. Introduction
Welcome to the curious case of Black Rose Industries — a smallcap specialty chemical player that looks more like a detective novel character than a listed company. Established in 1990, this company has dabbled in everything from adhesives to fabrics, water treatment to dental resins, and even windmills. If it had its way, it would probably manufacture Maggi masala too.
But here’s the catch: Black Rose is India’s first acrylamide manufacturer, which sounds fancy until you realize it goes into boring things like paints, adhesives, and water treatment flocculants. Not Instagram-worthy, but very “GDP-worthy.”
And because no desi chemical company story is complete without a Japanese angle, Black Rose even had a wholly-owned subsidiary in Japan (B.R. Chemicals). Except, they’ve now decided to sell it — proving that sometimes even roses shed petals.
3. Business Model – WTF Do They Even Do?
Lazy investor version: They import, distribute, and manufacture niche chemicals nobody else bothers with.
Chemical Distribution: The boring but steady arm — imports and sells specialty/performance chemicals across industries like agrochemicals, polymer additives, dyestuffs, tyres, catalysts, and perfumeries. Basically, supplying everyone else’s hero product.
Manufacturing: India’s first acrylamide + polyacrylamide plant at Jhagadia, Gujarat. Products go into paints, emulsions, adhesives, water treatment. Also dabbled in fabrics (industrial use).
Renewable Energy: Two wind power plants feeding into SEBs. Green points for ESG presentations, negligible impact on P&L.
Dental: Yes, they also make dental bonding agents, resin cements, composites. Next time your dentist charges ₹5,000 for a filling, thank Black Rose for contributing to that “ouch.”
👉 Question: Would you prefer a smallcap with multiple small product lines (like Black Rose), or a focused big player with one cash cow like Pidilite?
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹59.8 Cr
₹98.3 Cr
₹82.9 Cr
-39.1%
-27.8%
EBITDA
₹5.8 Cr
₹6.2 Cr
₹8.5 Cr
-6.4%
-31.8%
PAT
₹4.2 Cr
₹4.7 Cr
₹5.8 Cr
-11.2%
-27.8%
EPS (₹)
0.82
0.93
1.14
-11.8%
-28.1%
Annualised EPS ≈ ₹3.3 → P/E ~30x at CMP ₹99.
Commentary: Sales collapse of nearly 40% YoY — this is not a cyclical dip, it’s a chemical accident. Yet, PAT fall is softer, meaning margins were protected. Good detective work, but revenue crime scene is still ugly.
