Agarwal Industrial Corporation Ltd Q2FY26 – Bitumen Empire Runs on Tar, Ships, and Sheer Grit (Revenue ₹245 Cr, PAT ₹12 Cr, YoY -34.9%)

1. At a Glance

If there’s one company that can make your monsoon drive smoother and your lungs cough a little harder, it’sAgarwal Industrial Corporation Ltd (AICL)— the undisputed “Bitumen Badshah” of India. This ₹1,172 crore market cap warrior has turned sticky tar into sticky profits for over two decades. Fromsupplying roads to India’s highwaysto transporting LPG like a desi version ofFast & Furious: Gas Drift, AICL’s empire runs on heat, pressure, and heavy logistics.

At the end ofQ2FY26, the company clocked aRevenue of ₹245 croreandPAT of ₹12 crore, marking a steepYoY profit drop of -35%. ItsROEstill struts at20.1%, proving the Agarwal clan knows how to roll over potholes profitably. With aP/E of 14.1xandROCE of 16.9%, the stock trades at ₹780, down from its high of ₹1,383 — perhaps weighed down by all that bitumen.

As theBhagavad Gitasays,“Karmanye vadhikaraste, ma phaleshu kadachana.”Agarwal Industrial truly lives it — working relentlessly on tenders, ships, and logistics, leaving market returns to destiny (and crude oil prices).

2. Introduction

Bitumen may not sound glamorous — unless you’re a road contractor or a politician announcing infrastructure budgets. ButAgarwal Industrial Corporation Ltd(AICL) has turned this dull black substance into a thriving business model. The company’s three-pronged empire —bitumen manufacturing, logistics, and renewable energy— functions like a perfectly heated asphalt mixer: sticky, efficient, and indispensable.

Headquartered in Mumbai, the company thrives where others fear volatility — in thepetrochemical and logistics value chain, where fortunes melt faster than tar in Indian summers. Over the years, AICL’s management, helmed by the sprawlingAgarwal family, has executed a growth story that’s as steady as it is underrated.

Yet, FY25–26 has been a bit rough. Revenue dipped4% YoY, and profits slid32%— classic signs of crude-driven cost pressure and tender timing mismatches. Still, the company isn’t slowing down. AICL is expanding itsNorth India bitumen market, clinching newBPCL and HPCL tenders worth ₹733 crore, and evenacquiring Konkan Storage Systemsto strengthen logistics muscle.

From 4,750 tons of ship capacity in FY20 to over1,02,949 tons in FY24, AICL’s marine logistics has gone from a scooter to a battleship. It now boasts650+ vessels, including 350 bitumen tankers and 300 LPG tankers — a fleet that could make the Navy blink twice.

3. Business Model – WTF Do They Even Do?

Let’s break it down for the lazy investor who thinks “bitumen” is a cryptocurrency.

Agarwal Industrial’s business model runs onthree main cylinders:

1. Bitumen & Allied Products (79% of revenue):This is the black gold segment — the lifeblood of Indian road construction. AICL manufactures and trades bitumen and related petrochemical products used in infrastructure projects. It ownsmanufacturing and storage unitsacrosssix states — Karnataka, Telangana, Maharashtra, West Bengal, Rajasthan, and Gujarat — with total capacity of 30,500 MT.
2. Transportation of Bitumen & LPG (4% revenue each):AICL doesn’t just make bitumen; it moves it too. Itsspecialized tankerstransport bulk bitumen and LPG across India under contracts withHPCL, BPCL, and IOCL. It’s basically the DHL of dangerous liquids.
3. Ship Chartering & Wind Energy (~13% and minor respectively):The company operates ships for bitumen logistics, a rare feat in its niche. Also, it generates power throughwindmills, proving that even a tar tycoon can go a bit green.

And if that wasn’t enough, they’re also anauthorized Ashok Leyland service center— because when your fleet is this large, it’s better to fix your own problems.

In short: AICL manufactures the tar, ships the tar, stores