1.At a Glance
Anupam Rasayan’s Q1 FY26 results are the financial equivalent of a Bollywood blockbuster opening weekend —Revenue up 89%, EBITDA up 118%, PAT up 297%. Order book? A thumping ₹14,646 crore. But before you start writing “chemical multibagger” in your diary, note the P/E is a nosebleed102×and ROE is still only 3.33%. It’s like owning a Lamborghini that’s currently stuck in second gear.
2.Introduction
Founded in Surat, this specialty chemicals manufacturer has become a darling of the “China+1” supply chain shift. They make high-value life science intermediates for agrochemicals, personal care, and pharmaceuticals, selling both in India and globally.
In theory, Anupam should be a consistent compounding machine — diversified customers, long-term contracts, high entry barriers. In practice, the last few years have been a mixed cocktail of growth spurts, high receivables, and underwhelming returns on equity. Q1 FY26 looks great on paper — but the million-rupee question is: can they repeat it without the chemical equivalent of a miracle monsoon?
3.Business Model (WTF Do They Even Do?)
Business Verticals (FY24 revenue share):
- Life Science Specialty Chemicals (91%):
- Agrochemicals (65%): Intermediates and active ingredients for insecticides, fungicides, herbicides.
- Personal Care (17%): UV filters, antibacterial actives.
- Pharma (9%): Intermediates and key starting materials for APIs.
- Other Specialty Chemicals (9%): Custom synthesis, high-performance materials.
Revenue comes from long-term contracts with marquee global clients. The idea is to be “sticky” — once a customer’s process uses your chemistry, switching is costly and risky.
4.Financials Overview
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 490.7 | 259.0 | 500.0 | 89.4% | -1.9% |
| EBITDA (₹ Cr) | 129.2 | 59.3 | 144.0 | 118% | -10.3% |
| PAT (₹ Cr) | 48.5 | 12.2 | 63.0 | 297% | -23.0% |
| EPS (₹) | 3.10 | 0.36 | 4.05 | 761% | -23.5% |
Annualised EPS = ₹3.10 × 4 = ₹12.40 → P/E ~ 92.5.Commentary: The YoY growth is bonkers — but the QoQ drop reminds us specialty chemicals is a lumpy business.
5.Valuation (Fair Value RANGE only)
Method 1: P/E
- Sector average for high-growth speciality chem: 35–40×.
- EPS annualised = ₹12.40 → FV range by P/E = ₹434 – ₹496.
Method 2: EV/EBITDA
- TTM EBITDA ~₹473 Cr, sector EV/EBITDA ~16–18×.
- EV range = ₹7,568 – ₹8,514 Cr → Per share FV range ≈ ₹688 – ₹774.
Method 3: DCF (10% discount rate, 15% growth)
- FV ~₹700 – ₹800.
Educational FV Range:₹434 – ₹800(Educational only; if you mortgage your house based on this, the only chemical reaction will be from your spouse.)
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26 blast-off– triple-digit PAT growth driven by new contract
