1. At a Glance – Chemical Giant Having a Mood Swing
₹4,500 Cr market cap. Stock at ₹1,043. Down 38% in 3 months and 42% in 1 year. ROCE still flexing at 24.9%, ROE at 22.3%, but Q3 FY26 just punched investor sentiment in the face.
Latest quarter numbers?
Revenue at ₹597 Cr (YoY -7.5%), PAT at ₹39 Cr (YoY -62%). OPM crashed to 17%, which for a specialty-leaning chemical company feels like showing up to a wedding in chappals.
And yet—this is the same company that:
- Built India’s first Epichlorohydrin plant
- Is the largest CPVC resin producer domestically
- Is mid-way through one of the most aggressive backward–forward integration capex cycles in Indian chemicals
So what is Epigral today?
A structurally strong chemical compounder temporarily trapped in a weak pricing cycle, heavy depreciation, and expansion hangover.
Is this pain temporary or structural? Let’s autopsy the numbers.
2. Introduction – From Caustic Soda Bhai to Specialty Sigma
Epigral (formerly Meghmani Finechem) is what happens when a boring chlor-alkali player goes to the gym, does R&D, and decides it wants specialty chemical margins instead of commodity headaches.
Over the last five years, the company has:
- Shifted revenue mix from 75% chlor-alkali to 56% derivatives & specialty
- Invested billions into CPVC, ECH, Hydrogen Peroxide, Chlorotoluenes
- Built a fully integrated chemical ecosystem at Dahej (60 hectares of chemical ambition)
But FY24–FY26 hasn’t been kind.
Realizations fell 12–45% across products.
Energy costs stayed sticky.
Depreciation exploded due to fresh assets.
And suddenly the same company that printed ₹357 Cr PAT in FY25 is reporting ₹39 Cr in Q3.
Classic chemical cycle story? Yes.
But cycles don’t hurt this much unless capex timing and pricing collide—which they clearly have.
So before declaring Epigral “finished”, let’s understand what exactly they do
.
3. Business Model – WTF Do They Even Do?
Epigral runs a chlorine chemistry empire.
Everything starts with salt + power → caustic soda. From there, chlorine is not wasted like in lazy commodity plants—it’s pushed downstream into higher-value molecules.
Two Segments:
A) Derivatives & Specialty Chemicals (56% of H1 FY25 revenue)
This is the cool kid segment.
- CPVC Resin & Compound (pipes, fittings)
- Epichlorohydrin (used in epoxy resins)
- Chloromethanes (MDC, Chloroform, CTC)
- Hydrogen Peroxide
- Chlorotoluenes (pharma & agro intermediates)
Higher margins. Stickier clients. Export potential.
B) Chlor-Alkali (44%)
The bread-and-butter segment:
- Caustic Soda
- Caustic Potash
- Chlorine & Hydrogen
Cash-generative, but brutally cyclical.
Epigral’s entire strategy is simple:
Use chlor-alkali as the cash cow, funnel chlorine into derivatives, and climb the value chain.
Execution? Ambitious.
Timing? Slightly cursed.
4. Financials Overview – Numbers Don’t Lie, But They Do Roast
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 597 | 645 | 587 | -7.5% | +1.7% |
| EBITDA | 103 | 183 | 132 | -43.7% | -22.0% |
| PAT | 39 | 104 | 52 | -62.2% | -25.0% |
| EPS (₹) | 9.07 | 24.00 | 11.94 | -62.2% | -24.1% |
Annualised EPS:
Average of Q1–Q3 FY26 EPS × 4
= (37.18 + 11.94 + 9.07) / 3 × 4 ≈ ₹77–78, which matches TTM ₹78.3
Commentary:
- Revenue stable-ish, margins nuked
- Depreciation +
