📌At a glance:Chemcon Speciality Chemicals Ltd, once hailed as a promising smallcap from the IPO boom era, is now facing a harsh comedown. From peak FY22 profit of ₹63 Cr, it has slumped to ₹24 Cr in FY25. Margins have evaporated, working capital is bloated, and even the lab mice are demanding better inventory controls. But is this just a bad phase — or the end of the specialty fairy tale?
🧪 About the Company
- Name:Chemcon Speciality Chemicals Ltd (CHEMCON)
- Incorporated:1988
- Business:Manufacturing of:
- Pharmaceutical Intermediates(like HMDS, CMIC)
- Oilfield Chemicals
- Agro intermediates
- Certifications:ISO 9001:2015, ISO 14001:2015
- Claim to fame:Once the largest producer of HMDS and CMIC in India
📦 It’s aniche B2B chemical supplier, primarily catering to pharma and oil & gas players — but niche also means fragile.
👨🔬 Key Managerial Personnel (KMP)
| Name | Designation |
|---|---|
| Mr. Kamal Aggarwal | Chairman & MD |
| Mr. Rajendra Singh Solanki | CFO |
| Mr. Lalit Chaudhary | (Resigned) Independent Director |
🎓 With recent resignations and lack of new capital deployment, even insiders seem unsure of the next chapter.
📉 Financial Performance (FY21–FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROCE (%) | Borrowings (₹ Cr) |
|---|---|---|---|---|---|
| FY21 | 243 | 56 | 15.40 | 29% | 6 |
| FY22 | 257 | 63 | 17.13 | 21% | 36 |
| FY23 | 303 | 55 | 15.04 | 15% | 64 |
| FY24 | 267 | 19 | 5.24 | 6% | 43 |
| FY25 | 207 | 24 | 6.67 | 7% | 25 |
💀 Highlights:
- Revenue Down:-32% in 2 years
- Net Profit Down:-62% in 2 years
- ROCE Collapse:29% → 7%
- Borrowing Reduced:Good. But you know what’s better? Profit.
💸 What Went Wrong?
1.Sales Crashed in Core Segments:
- Pharma API clients shifted toin-house production
- Global slowdown in oil & gas exploration meant lower chemical demand
- Loss of export orders due toChina +1 losing steam
2.Operating Margins Vanished:
- OPM fell from32% in FY22 →
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