Chembond Chemicals Ltd Q2 FY26 – The Water, the Walls & the Witty Woes of a Specialty Chem Wizard

1. At a Glance

Chembond Chemicals Ltd (NSE:CHEMBONDCH) is back with its latest Q2 FY26 results — and oh boy, the numbers might not make your eyes pop, but the company’s restructuring game surely will. With amarket cap of ₹408 crore, aP/E of 13.2, and adividend yield of 0.5%, this is one of those rare mid-sized Indian chemical stories where family legacy meets technical niche. The stock currently trades at₹151, down almost19% over the last three months, reminding investors that “chemicals may react, but prices surely overreact.”

The September 2025 quarter reportedsales of ₹73 croreandPAT of ₹7.2 crore, reflecting aQoQ revenue dip of 2.65%but aprofit rise of 4.9%. A sweet contradiction — falling top line but rising bottom line — much like Indian TV serials: fewer episodes, higher drama. TheROCEstands at a beefy26.5%, andROEat19.2%, both suggesting management isn’t just mixing acids but also cooking decent returns.

With zero debt, a current ratio of6.1, and a promoter holding of67.7%, Chembond is the financial equivalent of that disciplined student who tops class without taking tuition.

2. Introduction

Chembond Chemicals has been around since 1974 — which means it has seen Indira Gandhi’s policies, liberalization’s chaos, demonetization’s confusion, and today’s algo-trading memes. What started as a small chemical business has now morphed into a multi-vertical player dealing inwater treatment, construction chemicals, and industrial hygiene.

But the real spice came in2025, when the company pulled off a corporate yoga pose —merging, demerging, and re-listing itselfall within one fiscal breath. The NCLT-approvedScheme of Arrangementsaw the merger ofChembond Clean Water Technologies Limitedand the demerger of theWater Treatment & Construction Chemicals businessfrom its erstwhile arm into the main entity. By July 2025, Chembond got re-listed like a reincarnated chemical sage on both BSE and NSE.

Investors were understandably confused — “Did I just buy Chembond or its cousin’s cousin?” But the clarity post-listing helped investors realize that this was not a shady shell game, but a strategic cleanup to make the water treatment and construction divisions shine brighter.

The new Chembond looks leaner, meaner, and surprisingly greener (figuratively and literally, given their water solutions). And the September quarter marks the first full period after this restructuring, which means the numbers now reflect the reborn entity’s actual performance.

3. Business Model – WTF Do They Even Do?

In simple terms,Chembond Chemicals makes sure your factory’s water behaves, your building doesn’t leak, and your kitchen stays hygienic. They operate across three major verticals:

1. Water Treatment– The crown jewel. Chembond makes specialty chemicals and systems for industrial water treatment — think cooling towers, boilers, and wastewater systems. Their goal: ensure every drop earns its keep. The latest offerings include theKem Watreat® kitsand the upgradedChembond FLUX® monitor, basically smart chemistry meets digital monitoring.
2. Construction Chemicals– The company’s attempt to make concrete relationships literally stronger. From admixtures and waterproofing agents to sealants and curing compounds, this segment serves the fast-growing infrastructure and housing markets.
3. Industrial Hygiene– Through a joint venture with Germany’sCalvatis GmbH, Chembond supplies cleaning and hygiene products under the quirky brandDAZZO! Professional. It’s like “Surf Excel meets industrial-grade sanitizer.” With a growing client base in food, dairy, and hospitality, this vertical smells like opportunity — quite literally.

Each vertical feeds into India’s industrial and consumer ecosystem. While giants likePidiliteorDeepak Nitritehog the limelight, Chembond quietly handles the behind-the-scenes chemistry that keeps factories running and hotels sparkling.

4. Financials Overview

Let’s get to the meat (or should we say molecules) of it. The latest