Black Rose Industries Ltd: From Roses to Chemicals – Smells Like Margin Trouble
1. At a Glance
Black Rose Industries Ltd (BRIL) is that relative who tells everyone they’re in “specialty chemicals,” but actually makes adhesives, flocculants, and dental bonding agents while moonlighting in renewable energy. FY23 revenue split? 61% from distribution, 29% from manufacturing, and the rest from playing “windmill uncle” in Rajasthan and Gujarat. Exports make up 55%, domestic 45%. Despite its “first acrylamide plant in India” bragging rights, the stock is down 30% in one year—clearly, Mr. Market thinks this rose is wilting.
2. Introduction
Black Rose Industries sounds romantic—like they should be selling perfume in Connaught Place, not acrylamide in Jhagadia. But this is India, where company names and business models rarely match. Incorporated in 1990, BRIL now finds itself somewhere between a chemicals trader, a mid-level manufacturer, and a renewable energy hobbyist.
Here’s the fun part: its wholly owned Japanese subsidiary, B.R. Chemicals Co. Ltd., is now being sold off (approved August 2025). That subsidiary alone contributed ₹54.37 crore revenue. When you sell the only part of your company with sushi-level credibility, you know you’re desperate for either focus or funds.
Financially, BRIL is the underdog of specialty chemicals—competing in an industry where giants like Pidilite (Fevicol fame), Gujarat Fluorochemicals, and Deepak Nitrite hog all the glamour. With just ₹496 crore market cap and a sales decline of nearly 10% in FY25, BRIL looks more like the opening act at an industry concert nobody paid to see.
But don’t underestimate them. They’ve quietly set up serious manufacturing capacity in Gujarat—32,000 MTPA acrylamide, 40,000 MTPA polyacrylamide liquid, plus smaller side dishes like acrylamide powder. They’re also trying to add credibility with an R&D center in Navi Mumbai.
Question to readers: Would you trust a company making adhesives and flocculants to also manage windmills efficiently—or is this just corporate cosplay?
3. Business Model – WTF Do They Even Do?
Think of BRIL as a kirana shop that suddenly decided to open a factory and then bought a couple of wind turbines to look “green.” Three divisions:
a) Chemicals Distribution Division Basically import-export middleman work. They sell specialty raw materials—polymer additives, catalysts, perfumery chemicals, agrochemicals, and whatnot. Around 61% of FY23 revenue came from this, proving that trading still pays more than sweating in manufacturing.
b) Manufacturing Division Here’s the “brag board.” India’s first acrylamide and polyacrylamide plants at Jhagadia. Uses? Paints, emulsions, adhesives, water treatment. Products:
Acrylamide (32,000 MTPA capacity, but only 20,000 available for sale because they need the rest themselves)
Polyacrylamide liquid (40,000 MTPA)
N-methylol acrylamide (2,000 MTPA)
Acrylamide powder (3,600 MTPA)
c) Renewable Energy Division Two small wind power plants in Rajasthan and Gujarat. Contribution? Symbolic. More like the company’s ESG “LinkedIn flex” than a profit driver.
So yes, they’re half trader, half manufacturer, and part-time green crusader. If BRIL were a student, it’s the kid who takes both science and arts, and then joins NCC for attendance.
Question: Would you call this diversification or corporate identity crisis?
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹59.9 Cr
₹98.3 Cr
₹82.9 Cr
-39.1%
-27.8%
EBITDA
₹5.8 Cr
₹6.2 Cr
₹8.5 Cr
-6.5%
-31.8%
PAT
₹4.2 Cr
₹4.7 Cr
₹5.8 Cr
-11.2%
-27.1%
EPS (₹)
0.82
0.93
1.14
-11.8%
-28.1%
Annualised EPS: ₹3.28 → P/E ≈ 29.6 at CMP ₹97.2. (Screener shows 24.1, but maths says otherwise.)
Commentary: Revenue collapse of nearly 40% YoY and margins under pressure. Clearly, distribution is tanking, while manufacturing is trying to keep the lights on. EPS shrinkage makes the current P/E look more inflated than a Diwali balloon.
5. Valuation – Fair Value Range Only
Method 1: P/E Industry average P/E ~31. BRIL’s EPS (annualised) = ₹3.28.
