01 — At a Glance
The Company Making the Plastic You Never Think About
- 52-Week High / Low₹124 / ₹74.2
- Q3 FY26 Revenue₹301 Cr
- Q3 FY26 PAT₹42.2 Cr
- TTM EPS₹6.76
- Annualised EPS (Q3 Avg × 4)₹6.80
- Book Value / Share₹41.7
- Price to Book2.04x
- 3-Yr Sales CAGR0.09%
- 3-Yr Profit CAGR-19.9%
- ROCE25.3%
Flash Summary: Bhansali just printed ₹42.2 crore profit in Q3 — up 3.38% YoY. But here’s the twist. Sales are down 12.8% quarter-over-quarter, and down 6.89% year-over-year. The stock is up 10% in 3 years despite profits being down 19.9% over the same period. They’re now building a ₹200 crore ABS plant expansion. Either it’s genius. Or it’s how the middle class learns expensive lessons about capital allocation.
02 — Introduction
ABS: Acrylonitrile. Butadiene. Styrene. And Why You Should Care.
You’re sitting in your car. Your dashboard? Plastic. Your car’s wheel covers? Plastic. The protective headgear of someone riding their motorcycle through Bombay traffic? Also plastic. That plastic is probably ABS (Acrylonitrile Butadiene Styrene). And if you’re lucky, it came from a place like Bhansali Engineering Polymers in Rajasthan.
Founded in 2003, Bhansali makes engineering polymers — specifically ABS and SAN resins — which are materials that other companies buy and then turn into stuff you actually use. Their business is B2B. Unglamorous. Stable. The kind of business that doesn’t make dinner party conversation but makes serious money if you get the fundamentals right. Their customers are companies making car parts, home appliances, electronics, healthcare products, and kitchenware.
Current installed capacity sits at 75,000 TPA (tonnes per annum) across two facilities in Abu Road, Rajasthan and Satnoor, Madhya Pradesh. In Sep 2025, the board approved a capacity expansion plan — to boost ABS capacity from 75,000 TPA to 100,000 TPA by September 2026. Cost: ₹200 crore. The mandate is clear: make more plastic, capture more market, hope the automotive sector doesn’t crater under EV transition pressure.
Q3 FY26 brought PAT of ₹42.2 crore, up 3.38% YoY. But quarterly sales of ₹301 crore are down 12.8% QoQ and 6.89% YoY. The company is staring at a growth puzzle. Capacity utilization was 97% in FY23. Demand is cooling. Yet they’re betting ₹200 crore that by 2027, the world will need more ABS.
The Expansion Announcement (Sep 2025): During the AGM, Chairman Jayesh Bhansali noted that the original 200,000 TPA expansion plan was scaling back to 100,000 TPA due to “capex efficiency” and “phased approach.” Translation: the first plan would’ve cost ₹1,700 crore and looked insane. This one costs ₹200 crore and looks merely risky. Completion target: September 2026.
03 — Business Model: WTF Do They Even Do?
They Make Raw Plastic. You Turn It Into Stuff. Everybody Profits.
Bhansali’s business model is elegantly simple: buy raw materials (monomers), polymerise them into resins, sell the resins to manufacturers who turn them into finished goods. It’s B2B at its most pure. No direct retail. No consumer brand. No TikTok influencer drama. Just polymer pellets and contracts.
Their product mix in FY25: ABS resins (92.6%), SAN resins (1.74%), and trading sales (5.68%). Basically, they’re an ABS shop with a small SAN sideline. They also have a 50:50 joint venture with Nippon A&L Inc. from Japan, which helps them access better technology and global markets. The JV supports their growth in the ABS and specialty resins space.
The revenue model is pricing-dependent. Polymer prices fluctuate with crude oil. When crude goes up, Bhansali’s input costs go up. When crude goes down, prices fall but so do their margins if they can’t pass costs through. It’s a game of commodity pricing power, and they have limited pricing power because they’re not the only ABS maker in India.
ABS Revenue92.6%of sales mix
Installed Capacity75,000TPA current
Capacity Util.97%in FY23
Nippon JV50:50partnership
Fun fact: ABS is used in EVERYTHING that needs to be light, rigid, and safe. Car interiors. Mobile phone bodies (back when people didn’t have glass phones). Motorcycle helmets. Even some medical device casings. Bhansali made the material. But they never get the credit. Engineers know it. Consumers don’t. This is the loneliest company in the supply chain.
04 — Financials Overview
Q3 FY26: The Quarterly Numbers That Tell a Story of Slowing Demand
Result type: Quarterly Results | Q3 FY26 EPS: ₹1.70 | Avg Q1–Q3 EPS: (₹1.84+₹1.63+₹1.70)/3 = ₹1.72 | Annualised EPS: ₹6.88
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 301 | 324 | 325 | -7.09% | -7.38% |
| Operating Profit | 51 | 52 | 49 | -1.92% | +4.08% |
| OPM % | 17% | 16% | 15% | +100 bps | +200 bps |
| PAT | 42.2 | 40.8 | 40.4 | +3.38% | +4.46% |
| EPS (₹) | 1.70 | 1.65 | 1.63 | +3.03% | +4.29% |
The Paradox: Revenue down 7.09% YoY. PAT up 3.38% YoY. How? Operating margins expanded from 16% to 17% — and there’s no interest or meaningful tax drag, so even as sales shrink, profits hold up. This is what happens when a company has almost zero debt and high operational leverage. Fewer sales, but the expenses don’t drop proportionally. Good margin discipline. Worrying demand picture.
💬 Can Bhansali justify a ₹200 crore capex on a ₹301 crore quarterly revenue base when sales are DOWN 7% YoY? Or is this a contrarian bet on auto sector recovery? What’s your take — expansion genius or capex overreach?
05 — Valuation Discussion — Fair Value Range
What’s This Plastic Maker Really Worth?
