1. At a Glance
Cochin Minerals & Rutile Ltd (CMRL) is that quiet back-bencher of the chemicals classroom who suddenly tops one exam, fails the next, and still somehow manages to get a scholarship. Market cap sitting around ₹208 crore, stock trading near ₹266, dividend yield a juicy ~3%, ROCE north of 23%, and debt so low it practically doesn’t exist. On paper, it looks like a value investor’s warm blanket.
But scratch the surface and the story gets… interesting. Q3 FY26 revenue came in at ₹61.6 crore, down YoY and QoQ, while PAT fell sharply to ₹2.98 crore. Margins have compressed, inventory days have exploded, and yet long-term profit CAGR looks impressive thanks to a freakishly strong FY23.
CMRL is a 100% export-oriented synthetic rutile manufacturer with Japan as its sugar daddy (61% of exports). It also happens to be India’s largest manufacturer of Aqua Ferric Chloride — a niche flex, but a real one.
So is this a misunderstood export compounder… or a cyclical commodity play wearing a “specialty” moustache? Let’s open the file. 🕵️♂️
2. Introduction
Cochin Minerals is not a flashy company. No glossy investor decks, no LinkedIn influencers from management, no “Vision 2030” PDFs with windmills and ESG buzzwords. What it does have is a 35-year operating history, deep export relationships, and a product (synthetic rutile) that quietly feeds global titanium and welding industries.
The company’s financial history reads like a Bollywood comeback script. Years of losses and weak margins till FY18, gradual recovery post FY19, then boom — FY23 hits with massive profits, ROCE explodes, dividends rain, and suddenly everyone discovers this microcap.
Fast forward to FY25–FY26, and reality checks in. Revenues are volatile, margins compress, inventory piles up, and quarterly profits wobble. The market, being the drama queen it is, punishes the stock.
The real question is:
Was FY23 a structural inflection… or just a lucky commodity cycle peak?
Before we answer that, let’s understand what this company actually does.
3. Business Model
– WTF Do They Even Do?
CMRL primarily manufactures Synthetic Rutile from Ilmenite. Think of Ilmenite as raw potato and synthetic rutile as premium French fries demanded by global customers.
Core Products
- Synthetic Rutile (≈95% of revenue)
Used in:- Titanium sponge manufacturing
- Welding electrodes (flux component)
- Special abrasives
- Aqua Ferric Chloride / Ferrous Products
Used in effluent treatment, desalination plants, textiles, paper, refineries — basically dirty industries trying to look clean. - Cemox
Niche application in bricks and tiles. Minor revenue, but nice to mention in AGM speeches.
CMRL has 50,000 MT per annum installed capacity for synthetic rutile and is a 100% export-oriented unit. Top 5 customers contribute 82% of revenue. Yes, concentration risk is real. Japan alone takes ~61% of exports.
The business is commodity-linked, energy-intensive, and sensitive to raw material prices, global demand cycles, and forex. This is not a SaaS company pretending to be chemicals. This is hardcore, dirty, industrial manufacturing.
Now let’s see how the numbers behave when reality hits Excel.
4. Financials Overview
Quarterly Performance Snapshot (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 61.62 | 64.55 | 65.25 | -4.5% | -5.6% |
| EBITDA | 3.45 | 6.04 | 1.84 | -42.9% | +87.5% |
| PAT | 2.98 | 5.02 | 2.95 | -40.6% | +1.0% |
| EPS (₹) | 3.81 | 6.41 | 3.77 | -40.6% | +1.1% |
Annualised EPS (Q3 FY26)
Average EPS of Q1, Q2, Q3 FY26 = (4.18 + 3.77 + 3.81) / 3 ≈ 3.92
Annualised EPS = 3.92 ×
