1. At a Glance – The 100-Year-Old Chemical Veteran Having a Mid-Life Crisis
DMCC Speciality Chemicals Ltd is not your usual “startup speciality chemicals darling.” This company was incorporated in 1919, when chemical engineering meant notebooks, not PowerPoint decks. Fast forward to today, and DMCC sits at a ₹563 crore market cap, trading around ₹226, down ~38% over 1 year despite posting 27.8% YoY quarterly revenue growth. Confused already? Good.
Q3 FY26 revenue came in at ₹150.8 crore, PAT at ₹6.16 crore, while margins quietly compressed and profits fell 21.8% YoY. Bulk chemicals are running at 90–95% utilisation, speciality chemicals are under-employed at 50–60%, and the boron business—once injured—has finally returned to the battlefield with management hinting at ₹125–150 crore potential.
Return ratios remain modest (ROE ~10%, ROCE ~14%), debt is low (₹40 crore), dividend yield exists (1.1%, yes this is rare now), and valuation is… reasonable. So why is the market behaving like it saw a ghost? Keep reading.
2. Introduction – When a Centenarian Chemical Company Refuses to Retire
DMCC is that old uncle in the chemical industry who has seen pre-liberalisation, post-liberalisation, China dumping, China shutdowns, GST, COVID, and still turns up to work.
The company started as India’s first sulphuric acid and phosphate fertiliser producer. Over the decades, it evolved into a fully integrated sulphur + boron + ethanol chemistry platform. No buzzwords, no ESG poetry—just old-school chemistry.
But here’s the irony. In a market that rewards narratives, DMCC offers numbers. And in a market obsessed with capacity expansions, DMCC openly says:
“No major capex planned.”
That honesty
is admirable. It is also… market-unfriendly.
3. Business Model – WTF Do They Even Do?
Let’s simplify DMCC without losing our sanity.
DMCC runs three chemical engines:
1. Bulk Chemicals
Sulphuric acid, oleum, chloro sulphonic acid, diethyl ether. Half sold outside, half used internally.
This is the cash cow, low margin but high utilisation (90–95%). Think of it as the steady tiffin income.
2. Specialty Chemicals
Sulfonating agents used in agrochemicals, detergents, dyes, pigments, pharma, cosmetics.
Exports form 65–70% of this segment. Higher margin, lower utilisation (50–60%). This is where operating leverage hides.
3. Boron Chemistry
Boric acid, borax variants, zinc borate, etc. Used in thermal power, ceramics, tiles, steel, electroplating.
This business was interrupted earlier but is now resumed, with management openly stating ₹125–150 crore revenue potential.
So DMCC is not “one product, one customer, one cycle.” It’s a chemistry buffet—some dishes hot, some waiting for reheating.
4. Financials Overview – The Quarter That Looked Good… Until You Zoomed In
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 150.83 | 118.03 | 126.02 | +27.8% | +19.7% |
| EBITDA | 14.70 | 17.74 | 14.01 | -17.1% | +4.9% |
| PAT | 6.16 | 7.88 | 5.75 | -21.8% | +7.1% |
| EPS (₹) | 2.47 | 3.16 | 2.31 | -21.8% | +6.9% |
