India Gelatine & Chemicals Ltd Q3 FY26: 99% Profit Jump, 9.6 PE & ₹80 Cr Expansion — Hidden Gelatin Multibagger or Just Sticky Margins?
1. At a Glance – The Jelly That Doesn’t Jiggle
India Gelatine & Chemicals Ltd is currently sitting at ₹358 with a market cap of ₹254 crore. The stock hasn’t done much in the last 3 months (-0.07%), but the numbers underneath? That’s where things get interesting.
Quarter ended December 2025 delivered:
Sales: ₹44.83 crore
PAT: ₹7.10 crore
EPS: ₹10.01
Profit growth YoY: 99.4%
OPM: 17.13%
And the best part? The stock trades at a P/E of 9.64 while the industry median P/E is 27.8.
Return on Capital Employed: 11.9% ROE: 9.22% Debt to Equity: 0.03 (basically no drama) Dividend Yield: 1.40%
So let’s get this straight — a company doubling quarterly profit, trading at single-digit P/E, almost debt free, and sitting in a niche specialty chemical space.
Is this market inefficiency or is the jelly too soft to hold shape?
Let’s dig in.
2. Introduction – From Bones to Business
Incorporated in 1973, India Gelatine & Chemicals Ltd manufactures Ossein, Di-Calcium Phosphate (DCP) and various forms of Gelatine.
Yes. The same gelatin that goes into:
Your capsules
Your dessert
Your cosmetics
Your photographic film
And even matchsticks
This isn’t some startup AI fantasy story. This is an old-school, asset-heavy, raw-material-intensive chemical manufacturer.
But here’s where the story gets spicy.
In FY25, the company delivered:
Revenue: ₹199 crore
Net Profit: ₹17 crore
And in TTM:
Revenue: ₹184 crore
Net Profit: ₹26 crore
Profit up. Sales down.
Welcome to the magical world of margin expansion.
But the real masala? There was an open offer in March–April 2025 at ₹408.90 per share. That’s higher than today’s ₹358.
So someone was ready to pay ₹408.90.
Now ask yourself — why?
3. Business Model – WTF Do They Even Do?
Let me explain this like you’re a smart but lazy investor.
India Gelatine collects animal bones.
Extracts collagen.
Processes it into:
Edible Gelatine
Pharmaceutical Gelatine
Technical Gelatine
Photographic Gelatine
DCP (used in animal feed)
This gelatin then goes into:
Pharma capsules
Food products
Cosmetics
Electrolysis processes
Matchboxes
Blood plasma substitutes
And now they’ve launched Marine Collagen under “Everpure Life”.
Certified by:
USFDA
Kosher
Halal
Meaning exports are serious business.
Revenue breakup shows:
97% from sale of products
3% from other operating revenue
Top customer contributes 13% of revenue.
So concentration risk? Mild, but not extreme.
This is a niche chemical business with export exposure, pharma linkage, and margin sensitivity to raw material prices.
Now the real question: Are margins sustainable or was FY26 just a lucky jelly bounce?
4. Financials Overview – Numbers Don’t Lie (But They Do Surprise)
