If patience were a chemical, Epigral would be manufacturing it in bulk. The company battled monsoon blues, soggy demand, and falling realizations — yet managed to keep EBITDA margins at 25%. When most peers were crying “overcapacity,” Epigral calmly doubled down on more capacity. Because why not fix weak demand with bigger plants?
From resin expansions to hydrogen peroxide mood swings, Epigral’s Q2 was a cocktail of cautious optimism and balance-sheet caffeine. The story starts slow but ends with billion-rupee projects and CAPEX swagger. Stick around — the second half looks less cloudy than Q2’s monsoon skies. 🌧️
2. At a Glance
Revenue down 4%: CFO says it’s “seasonal,” market calls it “ouch.”
Sales volume up 2%: Grew, but barely enough to wake the chart.
EBITDA margin at 25%: Still flexing in a weak pricing environment.
PAT at ₹51 Cr (–36% YoY): Profit took a chlorine bath.
Plant utilization at 78%: Monsoon + maintenance = production yoga break.
Net Debt/EBITDA 0.8x: Balance sheet strong enough to fund the next obsession.
Capex ₹236 Cr YTD: Because building never stops, even when prices fall.
3. Management’s Key Commentary
Maulik Patel: “Chemical markets are mixed — some shine, some sulk, all blame the weather.” (Translation: Blame the monsoon, always safe.)
“EBITDA margins stayed healthy at 25% despite lower utilization.” (The company basically said: we can suffer, but profitably.)
“Doubling capacity in CPVC and Epichlorohydrin is on track.” (Because nothing says recovery like adding more tons during weak demand.)
“New Chlorotoluene chain commissioned; contribution from FY27.” (Translation: Big plant, no revenue — yet.)
“New CAPEX project under evaluation for post-FY28 growth.” (Investors wanted Q3 clarity, got FY28 philosophy.)
Milind Kotecha: “Revenue fell 4%, EBITDA 19%, but cash flows are solid.” (He’s basically saying: we’re broke on paper, but rich in Excel.)
“Net debt stable at ₹496 Cr; CAPEX funded internally.” (The debt diet plan is working, despite eating ₹236 Cr of CAPEX.)
